What is the primary function of self-insurance in California Workers’ Compensation?

The primary function of self-insurance in California Workers’ Compensation is to enable employers to manage their own claims directly. This approach allows employers to take control over how they handle workers’ compensation claims, including the investigation, management, and resolution processes. By self-insuring, employers can tailor their claims management strategies to fit their unique needs and circumstances, potentially leading to more efficient claims handling and cost control.

Self-insurance requires employers to meet specific financial and administrative requirements set by the state, ensuring they can fulfill their obligations to their employees. This is a significant responsibility that provides flexibility and can lead to better outcomes both for the employer and the injured workers.

The other options describe elements that do not accurately represent the primary function of self-insurance. For example, eliminating all insurance responsibility is not feasible because employers must still be accountable for workers' compensation claims. Discounts on insurance premiums relate to traditional insurance models rather than self-insurance. Finally, the concept of requiring employees to opt-in for coverage is not aligned with how workers’ compensation operates, as coverage is generally mandatory for eligible employees.