All active self-insured employers must have security on file with the Georgia Self-Insurers Guaranty Trust Fund in the form of a surety bond or letter of credit, using the language approved by the Georgia Self-Insurers Guaranty Trust Fund. NO DEVIATIONS WILL BE ACCEPTED.
To ensure that all companies to be covered by a member’s self-insurance program are included on the security, the language “and self-insured subsidiaries and affiliates, if any” must be placed after the company name everywhere it appears in the letter of credit or surety bond. It is no longer permissible to list individual subsidiaries and affiliates.
For copies of the approved language for letters of credit and the surety bond form, along with detailed instructions for the issuance of both forms of security, please see the “Forms” section of this site. PLEASE NOTE: Letters of credit must be issued or confirmed by a Georgia depository. NO EXCEPTIONS WILL BE GRANTED.
The amount of the required security is stated on an Order issued by the State Board of Workers' Compensation. For information related to the setting of security requirements, please see the “News” section of this site for discussion dated 10/14/2003. More information regarding the calculation of the security requirement can be found in the “Security Formula” section of this site.
Cancelled members are required to keep security on file for a minimum of two (2) years from the closure of their last claim. The employer must also be cancelled for at least two (2) years and cannot have made any indemnity payments in the last three (3) years, nor any medical payments in the last twelve (12) months. The employer must confirm they have not received any unpaid medical invoice(s) over this same period. For more information, please see the “Request for Elimination” section of this site.