Is a SIG Right for Your California Business?
California business owners are facing a hard market in 2026. Workers’ compensation rates are fluctuating, and many employers are looking for alternatives to the traditional “Guaranteed Cost” model. One of the most popular alternatives is the Self-Insured Group (SIG).
What is the Difference?
- Guaranteed Cost: You pay a fixed premium. The carrier takes all the risk. If you have zero claims, you don’t get money back. If you have many claims, your premium doesn’t change until renewal.
- Self-Insured Group (SIG): You pool your risk with other businesses in your industry. If the group performs well, you can receive dividends (money back). However, you also share the liability if the group performs poorly.
The Pros and Cons
For businesses with excellent safety records, a SIG can offer massive savings. However, it comes with “Joint and Several Liability,” meaning you are partially responsible for the group’s losses. Before making the switch, you need to analyze your financial tolerance.
Get a Risk Analysis
At Ted Hamm Insurance, we help you calculate if the potential savings of a SIG outweigh the risks. Contact us today for a comparison quote.