What does Self Insurers Bond mean? Read on to discover the definition & meaning of the term Self Insurers Bond - to help you better understand the language used in insurance policies.
Self Insurers Bond
A type of surety bond that provides a promise to pay self-insured losses in case the promisor (self-insurer) is unable to meet its obligations. For example, in order to self-insure workers compensation risk, most states require that the self-insurer post a self-insurer's bond with the state. The state then recognizes that the self-insurer will have adequate resources to pay workers compensation claims.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
We hope the you have a better understanding of the meaning of Self Insurers Bond. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for: