The majority of small businesses (73 percent) report they have little or no knowledge of how Self-Insured Groups (SIGs) work according to the recent Small Business Opinion Poll conducted by ORC International commissioned by EMPLOYERS®, America's small business insurance specialist®.
EMPLOYERS’ latest SIG-related poll results come at a time of continued financial challenges for some large SIGs and their members around the country. In California, a workers’ compensation SIG for restaurants, golf courses and country clubs recently announced a $42 million assessment on its member businesses to make up for the group’s insufficient reserves. The assessment means costs of tens of thousands of dollars or more to the member companies, including many that are former members. And recently a healthcare industry SIG also announced an assessment to its members which was necessary to comply with California financial standards and to shore up a $25 million reserve deficit.
Four out of ten small business decision-makers incorrectly believe that SIG members are not financially responsible for the claims of each of the group’s other member companies, according to the latest EMPLOYERS Small Business Opinion Poll. This lack of SIG knowledge is not limited to the general small business population. Thirty-nine percent of small businesses who are currently or were part of a SIG incorrectly believe SIG members are not financially responsible for the workers’ compensation claims of each of the other companies in their SIG, not just their own businesses.
EMPLOYERS Small Business Opinion Poll Snapshot:
- 73 percent have little or no knowledge of how SIGs work
- 40 percent of all small business decision-makers polled don’t realize SIG members are financially responsible for each of the other member company claims
- 39 percent of current and former SIG members don’t realize they are responsible for claims of each of the other member companies
- 31 percent believe saving money on annual premiums outweighs the financial risk of a SIG failure
- 25 percent incorrectly believe that their claim liability ceases when they leave a SIG