Self-Insurers Surety Bond {IC52}

IC52 - SELF-INSURER’S SURETY BOND. This form is used by employers in Illinois who have been approved to self-insure for workers’ compensation rather than purchasing traditional insurance. This bond serves as a financial guarantee to ensure that the self-insured employer, referred to as the Principal, fulfills its legal obligations under the Illinois Workers’ Compensation Act and the Workers’ Occupational Diseases Act. The bond is issued by a Surety, which is a licensed insurance company, and guarantees payment of compensation and related defense costs owed to employees who suffer work-related injuries or illnesses while employed by the Principal. If the employer fails to pay what is owed, the Surety is responsible for covering those payments up to the bond amount. The bond also allows employees to bring direct legal action against the Surety if necessary, and gives the Illinois Self-Insurers Advisory Board the authority to demand payment from the Surety to protect employees' benefits. The bond can be canceled with 60 days’ written notice, but cancellation does not release liability for injuries that occurred before the cancellation date. www.FormsWorkflow.com