The Fund

Established on July 6, 1984 by the California State Legislature, the Self-Insurers’ Security Fund is a non-profit organization responsible for managing the shared liabilities of workers’ compensation claims arising from companies that become insolvent.

The California Self-Insurers’ Security Fund

Established by Labor Code Section 3742 on July 6, 1984 by the California State Legislature, the Self-Insurers’ Security Fund is a non-profit organization responsible for managing the collective liabilities of workers’ compensation claims arising when former self-insured private companies operating in California become insolvent. The Legislature created the Fund in order to ensure the continuity of workers’ compensation benefits of self-insured companies that have defaulted on their workers’ compensation obligations – usually due to bankruptcy.

The Security Fund oversees nearly $9 billion in open private-sector workers’ compensation claim liabilities associated with its more than 525 individual member companies and 26 self-insured groups.

Our official mission: “To provide continuity of workers’ compensation benefits to injured workers of insolvent, private self-insured companies at the lowest overall long-term cost, equitably distributed to the self-insurance community.”