State Sponsored Work Comp Programs (Assigned Risk Pools)

A state-sponsored work comp policy — frequently referred to as the “State Fund or State Pool” in many states – pays benefits to workers who become injured or disabled in the course of their employment. All states require employers to cover the cost of work related injuries or illnesses, but not all employers can get their coverage through a private carrier, PEO’s, EOR’s or other work comp programs. Employers in high risk industries (ie oil and gas for example) or with high experience modifications (X-Mods) are frequently turned down by less expensive work comp options and must turn to the state funds. All states are required by law to offer some kind of worker’s compensation coverage to all employers. State sponsored programs are not the most economical and dealing with state bureaucracies can be very time consuming. California, New York, Florida and Pennsylvania have overly bureaucratic and very challenging state managed work comp programs though other states are not much easier to work through.

If you select a state fund policy as your work comp solution, Nationwide Work Comp Solutions can refer you to an excellent payroll administrative service that specializes in processing client’s payrolls, and administrating staffing health benefits.