An example of the premium, Letter of Credit and responsibility:

$250,000 deductible per claim

Premium is usually about 40% of State Fund Premium

A Letter of Credit equal to another 125% of State Fund Premium will be required. The Letter of Credit will be locked up for 4 or 5 years.

A Maximum Loss aggregate amount is usually set at least 125% and more likely at 140% of State Fund Premium which you could pay as claims.

If you add the Average Losses over the last five years to the minimum premium of the deductible plan, it will give you an idea of the cost of the program. That is barring any significant loss which could cause you to hit the maximum aggregate which can not be counted out.

No HCO. No safety Incentive. No LOC. No Safety Engineer. No Compliance. Waiting to last minute?

You become the insurance company up to deductible per claim and aggregate.

As long as losses are open your Letter of Credit has to remain open, Because it is an Irrevocable line of credit even if you leave the program the Line of Credit will remain open.