As an option to being a regular subscriber to the Fund, employers may apply to be self-insured. Certain requirements must be met to satisfy the commissioner as to the ability of an employer to ensure payment of compensation before permission to self-insure will be granted. Generally, an application for self-insurance must be received by December 31 for an effective date of July 1 of the following year. There are seven exceptions to this provision, including employers of domestics, employers of five or fewer persons in agriculture and those who employ only temporary help for short periods of time. Such exempt employers have the option of providing coverage for their employees through the Fund.
Base rates ensure sufficient premium dollars to pay the costs of claims that occur.