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.
We hope the you have a better understanding of the meaning of Self Insurers Bond.