Oregon Certified Self-Insured Employer or Workers Compensation Bond

The Department of Consumer and Business Services of the State of Oregon requires employers to apply for bonds should they decide to self-insure for their employees’ compensation benefits. The bond will guarantee the compensation of the city should accredited applicants cause any licensing infractions, such as the failure to meet the obligatory coverage.

What is Self-insurance?

Self-insurance allows private companies to personally ensure or cover financial risks in providing workers’ compensation benefits. In the State of Oregon, employers who wish to be self-insured must secure their license with the Department of Consumer and Business Services. The applicant must comply with all the requirements as prescribed here and submit them to the Worker’s Compensation Division. Depending on the evaluation, the director of the division may require the permittee to submit yearly documentation more frequently.

What is the Oregon Certified Self-Insured Employer or Workers Compensation Bond?

The State of Oregon requires employers to purchase a bond with the Department of Consumer and Business Services to secure their certificate of self-insurance. This will allow them to activate their licenses and operate under self-insured status. Under the bond, the Dept. of Consumer and Business Services is protected by the surety carrier should the employer violate any licensing provision.

Accordingly, employers who are self-insured may apply for the Workers’ Benefit Fund reimbursement program like other insurance companies. Visit the Office of Worker’s Compensation Division to know more about Oregon’s Self-Insurance Certificate or read on their self-insurance policy.

How does it work?

The Oregon Certified Self-Insured Employer (Workers Compensation) Bond must be issued by a surety bond provider certified by the Oregon Department of Insurance. The parties in the agreement are the Principal (employer or permittee), Obligee (Dept. of Consumer and Business Services), and Surety/Bond Company or Obligor (surety bond provider or insurance).

The Obligor will guarantee the compensation (performance bond) of the Obligee should the Principal fail to meet scheduled taxes and fees or violate any other licensing provisions. The Obligor will receive and assess the validity of all public claims where claims may only amount to the total penal sum arranged in the bond form. The Principal shall reimburse all expenses covered by the Obligor.

The Obligor is secured through an indemnity agreement as to the permit applicant or licensed business will ensure the full reimbursement of the claims, including legal fees and premiums. This agreement shall be made before the execution of the bond.

How much does it cost?

Depending on the employee's credit score, industry experience, business history, and the surety provider’s background, the Oregon Certified Self-Insured Employer (Workers Compensation) Bond may cost between 2.0% and 7.5% of the total bond amount.

How can I apply for this bond?

At Surety Bond Authority, we are committed to helping you get your bond the fast and easy way. Follow our step-by-step procedure to help you get started.


To secure your bond, make sure to transact with reputable surety carriers early. If you are ready to get yours processed today, you can APPLY HERE. Rest assured our expert surety bond agent will guide you from the time of your application until the issuance of your bond.


For the assessment, our underwriter will require the following information:

  • Nature of your business
  • Credit Score
  • Financial strength

For speedy processing of your bond application, make sure that you have collected and provided accurate information upon submission.

Bond Issuance

Once the assessment is done, we will promptly issue your bond and send it your way. Contact us today and get your bond issued in no time.

Oregon Certified Self-Insured Employer or Workers Compensation Bond

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