if the group, and each individual member of the group, has sufficient financial stability to meet its obligations under the WDCA. After a group is authorized to self-insure, additional members can join only after receiving the approval of the group and the WCA.

Private employers that participate in group self-insurance are collectively and individually responsible for the payment of any contributions the WCA may require of any member of the group. Public employers are only collectively liable for required contributions.

To receive WCA authority to participate in or create a self-insurance group, employers must submit Form WC-402G to the WCA and:

·         Have combined assets of at least $1 million;

·         Be in the same industry as other group members (as defined by the WDCA or approved by the WCA);

·         Provide an indemnity agreement;

·         Provide a draft of the self-insured group’s by-laws (a sample document is available with the self-insured group application form);

·         Obtain a blanket fidelity bond of at least $1 million (to insure the staff that will be handling the monies for the group); and

·         Obtain a surety bond or financial security endorsement (the WCA will determine the amount of this instrument after reviewing the group’s financial condition).

Group self-insurance must be renewed annually, using the application form (Form WC-402G).

NOTICE REQUIREMENTS

Within 30 days of obtaining workers’ compensation coverage, employers are required to file with the WCA a notice of the issuance of the insurance policy and its effective date. This notice and other coverage maintenance forms, such as notification of insurance termination and employer name changes, can be filed electronically using the instructions provided in the WCA website.

Recording and Reporting Requirements

Employers are required to keep a record of all employee injuries resulting in death or disability. The record must indicate:

·         The employee’s name, address, age and wages at the time of injury;

·         The time and cause of the injury;

·         The nature and extent of the injury and its accompanying disability; and

·         Any other information that the WCA may reasonably require.

Employers must only report an injury to the WCA if the injury caused: (1) disability extending seven days beyond the date of injury, (2) death or (3) specific loss. In the case of death, the report must be immediate.

REDUCING THE COST OF WORKERS’ COMPENSATION INSURANCE

Workers’ compensation insurance premiums are determined primarily by the employer’s industry. For example, workers’ compensation insurance premiums are generally more expensive for a construction or manufacturing company than for a professional services firm. However, employers across all industries can take steps to reduce the cost of maintaining workers’ compensation insurance.

Safety Programs

The easiest, and often most effective, way to reduce frequent workers’ compensation claims is implementing a quality safety program. Safety programs can help employers identify safety issues that employees face on a daily basis. Safety programs should also establish safe work practices and educate employees on how to reduce risk. When creating a safety plan, employers should analyze the factors that cause frequent claims.

Return-to-Work Programs

Implementing programs to put injured employees back to work, even in a temporary role, can help reduce workers’ compensation premiums, increase the employer’s overall output and raise the injured employee’s morale.

Reporting Fraud

Fraud is expensive and can drastically raise premiums. If an employer suspects that an employee has submitted a fraudulent workers’ compensation claim, the matter should be promptly reported to the WCA for an investigation.

MORE INFORMATION

Contact Macomb Benefits or visit the Workers’ Compensation Agency website for more information on workers’ compensation laws in Michigan.