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State laws require that most employers buy workers compensation insurance. However, almost all states allow some employers that have sufficient net worth to retain a large portion of the financial risk for workers compensation benefits. We say that these employers “self-insure,” and we refer to them as “self-insureds” or “self-insurers.” States approve self-insured status on an employer-by-employer basis, and we say that these employers are “qualified self-insureds” or permissibly self-insured.” Employers can also join a self-insured group in many states.

 


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