SAIF Workers Compensation Employers Bond
Employers with one or more full-time or part-time employees are obliged to obtain a worker’s compensation or self-insurance. The insurance will be used to cover missed wages or medical expenses. The insurance also protects the employer from potential lawsuits from injuries or illnesses contracted while working.
In securing the worker’s compensation insurance in the State of Oregon, a SAIF Workers Compensation Employers Bond must be first satisfied.
What is the SAIF Workers Compensation Employers Bond?
State of Oregon State Accident Insurance Fund Corporation, the Obligee, is where businesses file a bond to activate their license. The Obligee is protected by the bond through transferring to a surety bond company the cost of the compensation for damages resulting from a licensed business breaking licensing laws.
There are different conditions that are applied and should be followed in this bond. The conditions are stated under the provisions of Oregon Revised Statutes Chapter 656.
Why do you need a SAIF Workers Compensation Employers Bond?
The SAIF Workers Compensation Employers Bond is a pre-licensing requirement for employers in the state of Oregon. The bond will in case of claims and will be initially covered by the surety carrier. All expenses will be duly reimbursed including the premiums. The bond is also used to activate their licences, businesses are required to file and purchase a bond with the State of Oregon State Accident Insurance Fund Corporation.
Securing your own licensing bond also allows you to reap the following benefits:
- Clients are completely safe and secured under your agency
- Agency credibility is boosted in terms of financial security
- You are able to use your full line of credit
- The confidentiality of your activities (unless requested by government authorities)
- Your access to professional advice counseling from lawyers, estimators, and similar professionals.
How does the SAIF Workers Compensation Employers Bond work?
The parties in the agreement are the Principal (business or applicant), Obligee (State of Oregon), and Surety/Bond Company or Obligor (surety bond provider).
The Workers Compensation Employers Bond must be filed with Oregon’s State Accident Insurance Fund Corporation (SAIF) and must be issued by a surety bond provider certified by the state’s Insurance Department.
For more information on licensing requirements, please visit Oregon Worker’s Compensation Division.
How much does the SAIF Workers Compensation Employers Bond cost?
SAIF Workers Compensation Employers bond typically costs between 2% and 7.5% of the bond amount. It will depend on the employer’s credit score, industry experience, business history, and the surety provider’s background.
How do I get the SAIF Workers Compensation Employers Bond?
Securing a SAIF Workers Compensation Employers Bond is fast, easy, and simple when transacting with a reputable surety company early. If you have more questions or are in need of more information, get in touch with us today.
Make sure you have gathered and provided accurate information on the following for the speedy processing of your application:
- Nature of your business
- Credit Score
- Financial strength
Rest assured our expert surety bond agent will guide you from the time of your application until the issuance of your bond. Once the assessment is done, we will promptly issue your bond and send it your way.