The Security Fund was created by the California State Legislature, which enacted legislation regarding ongoing regulatory coordination and oversight of both the Security Fund and its members.

Government Overview

The Security Fund was created as an independent not-for-profit organization in 1984 by the California State Legislature. The Security Fund was designed to ensure that employees of private self-insurers that default on their workers’ compensation obligations will continue to receive statutory benefits. The State of California provides no financial support to SISF.

California law requires ongoing regulatory coordination and oversight of both the Security Fund and its self-insured member entities. Member entities elect seven (7) representatives, from among the member entities, to serve four-year terms on the Fund’s Board of Trustees. An eighth member, the Director of the Department of Industrial Relations or the Director’s Designee serves as an Ex Officio member of the Board.

The Director of the Department of Industrial Relations (DIR) and its Office of Self Insurance Plans (OSIP) provides regulatory enforcement and administrative control over all workers’ compensation self-insured entities operating in California.

For questions regarding the Office of Self Insurance Plans or regulatory matters, please directly contact the Office of Self-Insurance Plans at 916-464-7000.

Department of Industrial Relations

The Office of Self Insurance Plans (OSIP), an office within the Director’s office of the Department of Industrial Relations (DIR), authorizes qualified employers to provide their own coverage for workers’ compensation liabilities.

The Director of DIR is responsible for certification of public and private self-insured employers, third-party administrative agencies that oversee self- insurance claim programs, and individual claims adjusters.

Self-insurers are required to post a security deposit — adjusted annually to cover expected liabilities — and to submit to OSIP audits. For more information, please visit the OSIP website.

For “Excluded” self-insured entities, (i.e. those not eligible for the Alternative Security Program) , OSIP determines the amount of collateral (security deposit) a self-insured member must post with the State to cover its expected future claim costs in the event the entity defaults on its California workers’ compensation obligations.  These are based on actuarial estimates contained in required actuarial reports due May 1 of each calendar year.  For more information about the required actuarial reports click here.

Government & Regulation

Click on the following links to learn more about the government entities that play an important role in administering and overseeing the Security Fund and workers’ compensation in California.

California Department of Industrial Relations (DIR)
Office of Self Insurance Plans (OSIP)
OSIP Security Deposit Requirements
DIR Commission on Health and Safety and Workers’ Compensation