What are the Risks vs. Rewards of Joining a GSIP?
GSIPs offer many advantages over traditional insurance company plans including: greater control, lower rates, removal from DOI and its oversight, industry specific loss control, peer review, potential dividends and stability. When evaluating participation in a GSIP one must weigh the numerous rewards against risks, including: Joint and Several Liability: Members of the group are both jointly and severally liable for workers compensation and employers liability losses incurred by the membership while they are members of the group. The subsequent bankruptcy of a member does not release the group members, during that period of time, from this liability. Terminated members retain their financial responsibility for the period of time they were in the group. Multi-State Operations: A California GSIP is regulated by the state of California and only covers exposures within California. As a result, an employer with operations within California. As a result, an employer with operations outside C
