For high-risk businesses seeking Workers’ Compensation coverage in California, one option is the State Fund, or SCIF. However, SCIF might not always be the best solution for high-risk businesses.
The Basics of SCIF
SCIF exclusively handles Workers’ Compensation in California. Their primary service is offering competitive rates, which are mainly available to low-risk companies with positive claims experience. They also offer rates for companies with high-risk, higher-than-average claims, or high experience modifier rates.
The Problem for High-Risk Businesses
While SCIF does offer coverage for high-risk businesses, it is not always the best option. This is because coverage obtained through SCIF is typically more expensive, while also being more limited than a plan from the regular California marketplace.
SCIF typically also only acts as a last resort for high-risk companies. To get coverage from SCIF, business must first try to get quotes from at least three California carriers. This can be a time-consuming process, which only puts extra stress on businesses trying to find the best coverage to protect themselves and their employees.
Other Downfalls
When a high-risk business gets coverage through SCIF, they may be subjected to audits. Another downfall is that if ATM withdrawals are not correctly tracked, they will be considered as used for payroll and assigned to the most expensive code, which can drive up coverage costs.
Other Options for High-Risk Clients
At PEO Insurance Brokers Network, we help agents find homes for their clients in high-risk industries. We provide Workers’ Compensation coverage to businesses in need, no matter the risk, and help agents find the best PEO coverage and savings for their insured. To learn how we can help you find coverage for your high-risk clients, email quotes@peobrokersnetwork.com to receive a quote.
