What Is Self-Insurance?
Self-insurance is not a workaround — it is a proven, highly regulated model that puts control back in the hands of employers. Rather than paying premiums to a commercial carrier that pockets the profit margin, CCGSIA members contribute to a shared pool that funds claims and operating costs collectively. When claims are well-managed, and safety performance is strong, surplus funds are returned to members as dividends.
It is a straightforward idea: take the profit motive out of workers’ comp, put safety and performance at the center, and give the surplus back to the employers who earned it.
Shared Risk, Shared Success — Partners in Safety, Sharing Success
Workers’ Compensation Group Self-Insurance is a unique alternative to traditional insurance. Members in a self-insured group pool their premiums with like-minded businesses to share the risk and reduce overall exposure. In doing so, expenses are minimized, losses are shared, safety programs become a top priority, and locally managed and administered claims handling gives employers greater control — resulting in substantial savings.
Protect Your Employees and Your Profit
Like traditional insurance, premiums for self-insurance are based on payroll and experience. Those dollars are then invested until needed to pay claims and other costs. After that, the surplus may become available for return based on shared and individual member loss experience. Unlike regular premiums paid for traditional insurance, contributions made to the Group yield a return for its member investors.
History of Group Self-Insurance Associations in Virginia
Highly regulated by the Bureau of Insurance through routine audits and annual reporting, Group Self-Insurance was created to provide a strong and stable option for workers’ compensation coverage.
In 1978, the Virginia General Assembly formed a legislative committee to study the problem of high workers’ compensation premiums for employers and to determine what other states were doing to combat this problem. The result of the study was legislation enacted in 1979 by the Virginia General Assembly to allow the formation of Workers’ Compensation Self-Insurance Funds — referred to as Group Self-Insurance Associations (GSIAs).
Coverage That Pays — Protecting Your Employees and Your Profits
A collection of insurance and occupational safety experts serving industry-specific members.
A Supervisory Board and service companies support the Group by underwriting membership applications, administering claims, developing safety programs for accident prevention, and managing end-of-year dividends.
Group Members Are Adequately Protected
The Group has an excess insurance policy provided by an A++ rated carrier, Safety National Casualty Company, along with protective funds that insulate the Group from the unforeseen financial burden of a catastrophic claim or unusual frequency of losses.
Member Premiums Are Protected by the Group
Each member pays its premium contribution to the Group. Premiums are invested until needed to pay claims and administrative costs. Lower overhead costs provide savings; however, the largest savings result from comprehensive underwriting, fair claims handling, managed care, and effective occupational safety and health services. These combined efforts reduce the overall risk of the Group and provide the greatest opportunity for dividend return.
Why Do I Need an Audit?
Audits determine if the payroll and class codes quoted at the beginning of a plan year correctly reflect the payroll and scope of work conducted during the plan year. A workers’ comp audit examines the books to determine the accuracy of the estimated policy premium. A year-end audit is a verification of the exposure of a member to determine the final premium to be charged, since the original quote is based on estimated payroll only. Depending on the outcome, you may receive a refund or owe additional premiums.
To assist with keeping your payroll as accurate as possible, don’t forget that you can call and adjust your payroll throughout the year — the change will be reflected in your next regularly scheduled invoice.
To expedite your audit and ensure a smooth process, please be sure the audit contact is someone familiar with the roles and responsibilities of each employee and can produce the following documents:
- Payroll records
- Employee records
- Certificates of Insurance
- Detailed description of your nature of operations
- To schedule your audit, please contact:
Central Virginia Audit Services
Local Decision-Making by People Who Understand Construction
We only exist to serve our members — that is not a marketing spin, it is the structural reality of how we operate. Self-insured groups only benefit the members. The Group’s purpose is to control workers’ compensation costs and promote safe work environments. Every fee is transparent, every dollar accounted for.
Benefits of Joining a Group Self-Insurance Association
Being a member of a Group Self-Insurance Association offers many unique benefits. The primary reason members join is the ability to save considerable amounts of money. With reduced expenses, occupational safety programs, and locally managed and administered claims handling, savings can be substantial.
Self-insured groups are successful for these reasons:
- Only employers with excellent loss records are selected for membership
- Administration costs are kept to a minimum
- Investment income accrues and is returned to the member employers
- Claims are investigated diligently before payments are made
- Required Occupational Safety and Health programs prevent many accidents
$89M+ in dividends declared since inception
About Commonwealth Contractors
- A.M. Best Rated A−
- 6th largest writer of workers’ compensation in Virginia for all industries
- View our outstanding $89+ million dividend history
- Highly regulated by the Bureau of Insurance through routine examinations and annual reporting
- 24-hour / 7-day-a-week injury triage hotline
- Annual discount for approved Drug-Free Workplace Program
- Unparalleled loyalty and satisfaction — 96%+ retention rate
- Stability — owned and operated by Virginia contractors since 1981
- Excess insurance with an A++ rated carrier — Safety National Casualty Company
- Top-notch loss control consultants
- Multiple protective funds
- Highly informative publications and seminars
Stability — Owned and Operated by Virginia Contractors Since 1981
Experience Modifiers
Also known as the “experience mod,” an experience modifier is a numerical expression of a company’s accident and injury record compared with the industry average. A rating of 1.0 means a company has an average safety record, while an experience mod of 0.80 indicates a company has a good safety record that will earn a discount against its premium. An experience mod of 1.20 means a company has experienced more or greater losses than the industry norm, and the company’s costs for insurance will be higher.
The Experience Mod is calculated using three years of data, excluding the most recently completed year. For example, the 2025 Experience Mod would include data from years 2021, 2022, and 2023. There are many variables considered in the formula, including:
- Whether claims are medical-only or involve lost time
- If a company’s frequency of claims is higher than average
- If a company’s severity of claims is higher than average
- The size of a company’s payroll and its class codes
The formula was developed by the National Council on Compensation Insurance (NCCI), and factors are recalculated every year based on national data. In the case of Commonwealth Contractors, a third party promulgates the group’s mods, effective April 1st, using the NCCI formula.
For a detailed explanation, NCCI has published a very helpful document: The ABC’s of Experience Rating.
Regulatory and Informational Resources
The following sources provide information on workers’ compensation insurance:
- Virginia Workers’ Compensation Commission
- Workers’ Compensation Notice Form — Virginia Workers’ Compensation Commission
- Virginia SCC — Bureau of Insurance
- National Council on Compensation Insurance (NCCI)
- Independent Insurance Agents of Virginia, Inc.
- International Risk Management Institute
- AM Best
- Business Insurance
- Risk & Insurance Management Society
- Workers Compensation.com
- Professional Insurance Agents Association of Virginia & D.C.
With group self-insurance, you are never alone. Take control of your safety program and team up with the best contractors in Virginia to save money on workers’ compensation insurance. Find a CCGSIA agent in your area to learn more about becoming a member.
CCGSIA Membership Benefits
In addition to cost savings, members have access to top-quality safety and health consultants and have the opportunity to network with the best of the best in the construction industry.
Who Is Eligible to Join Commonwealth Contractors?
In general, potential Group members must, at a minimum, meet these requirements:
- Domiciled in Virginia
- Minimum manual premium of $5,000
- Positive net worth
- In business for 3+ years
