What must self-insured employers do to ensure future benefit payments?

Self-insured employers are responsible for their own workers' compensation claims. To ensure they can meet future benefit payments to injured workers, they must provide a level of security that demonstrates their financial ability to cover these costs. Posting bonds as security acts as a safeguard for the compensation system, ensuring that funds will be available to pay benefits as required. This requirement helps to protect employees, who need assurance that they will receive their entitled benefits, regardless of the employer's financial circumstances.

While the other options may support an effective self-insurance program, they do not serve the specific purpose of directly securing future benefit payments. Purchasing additional insurance could help mitigate risks but does not directly guarantee payment of benefits. Hiring a third-party administrator could streamline claims management, but it does not address the necessity for financial security for future payments. Regularly reporting financials to the state is a good practice for transparency and compliance, yet it does not replace the need for a tangible security measure like bonds. Thus, posting bonds as security is essential for ensuring future benefit payments to workers.