Oregon self-insurer workers’ comp bonds.
From $100.

What the security deposit actually secures

Oregon gives a subject employer two ways to cover its workers’ compensation liability: buy a policy from SAIF or an authorized carrier, or become a certified self-insured employer under ORS 656.430. The second route is not a paperwork formality. ORS 656.407 makes the employer establish proof of financial ability and provide security the director determines acceptable, and it says plainly what that security is for: it is held by the director to secure the payment of compensation for injuries to the employer’s subject workers. Money drawn on it is deposited with the State Treasurer in an account separate and distinct from the General Fund. If the employer stops processing and paying claims, the director draws on the security so the claims keep moving.

The amount is not a round number somebody picks. OAR 436-050-0180 sets it at the greater of $100,000, your future claim liability including incurred but not reported (IBNR) losses plus a claims-processing administrative cost and the assessments payable to the director for your next fiscal year, or last fiscal year’s annual incurred losses on the same build-up. A new applicant faces a second floor: the greater of your anticipated assessments plus 65% of the annual premium you would pay if carrier-insured, or $300,000 plus $30,000 for each $100,000 your net worth sits below $2 million, or your approved self-insured retention level. An employer whose financial strength scores only moderate has the calculated deposit increased by 5% to 20%. You may instead ask the director to set the deposit from a certified actuarial study — submitted within seven days of the director’s notice, and accepted at the recommended reserve level or the 75% confidence level if a range is given.

The bond form and its exit rules matter as much as the number. OAR 436-050-0165(4) requires Form 824, "Surety Bond," written by a company authorized under ORS chapter 731 to transact surety business in Oregon and carrying an S&P Insurer Financial Strength Rating of A or better or an A.M. Best rating of B+ or better; the bond is issued in the employer’s legal or registered assumed business name, must be continuous in form, and is executed by the surety’s attorney-in-fact with a power of attorney for the full penal sum attached. It may be terminated only on written notice to the director and the principal effective no sooner than 30 days after the director receives it — and termination does not limit the surety’s liability for anything that happened first. Only the director can release it, in writing. All increases, authorized decreases and principal name changes go on Form 1810, "Surety Bond Rider," which is not effective until the department accepts it. Alongside the deposit you carry excess workers’ compensation insurance under OAR 436-050-0170 and file an annual financial report under OAR 436-050-0175 — within 120 days of fiscal year end, or 180 days for a municipal or public corporation. It is not insurance for your company: if the director draws on the bond, the surety looks to you.

You need this bond if you are