What are the requirements to become a self-insured employer for workers compensation in the state of Utah?
The employer must have been in business for a period not less than five (5) years. An employer in business less than five years may be considered only if their liability is guaranteed by their parent corporation which has a business history of no less than five years. If the employer is a subsidiary, then a fully executed “Agreement of Assumption and Guaranty” by the parent, agreeing to indemnify all workers’ compensation liability incurred while the subsidiary is self-insured in the state of Utah must be submitted. A division may not be self-insured if the parent company is not. The Commission may utilize services such as Dun & Bradstreet (D&B) credit ratings for the purpose of evaluating a company’s financial ability to pay. The employer will not be considered if they do not fall within the top two D&B ratings on estimated financial strength (5A or 4A), which means the net worth must be $10,000,000 or more.
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