State Compensation Insurance Fund (“SCIF”) is a California state, non-profit workers compensation insurance provider. It has announced that it will establish two new funds to support the health and recovery of essential workers and workplace safety during the COVID-19 crisis. Some details on the benefits being offered are set forth below. The Board is scheduled to meet again later this week to consider additional ways to provide support.

What Benefits Are Currently Being Offered?

The Essential Worker Support Fund is intended to support policyholders’ “essential workers” who contract COVID-19 or are ordered to self-isolate due to a potential exposure. This fund will provide wage replacement up to six (6) weeks and assist workers without health coverage with uncovered medical costs. For workers who have health coverage, the fund will assist with copayments and deductibles in addition to up to six (6) weeks of wage replacement.
SCIF has stated the benefits will be available regardless of potential legal uncertainty about whether an employee’s COVID-19 arose from their employment (generally an employee must show their injury “arose from” their employment to be eligible for worker’s compensation benefits). Receipt of these supplemental benefits also will not impact the worker’s ability to later pursue normal workers’ compensation benefits. Any COVID-19 claim that is clearly work related will receive full workers’ compensation benefits and not draw down on this fund.
Currently SCIF has provided $25 million for this fund, but it has stated if the fund is depleted the Board will consider authorizing additional funds. Any payments SCIF makes that are outside of a usual workers’ compensation claim will not impact a policyholder’s experience modification, i.e. the calculation used for risk evaluation of a given employer, which can affect premium costs.
The Essential Business Support Fund is designed to assist “essential businesses.” The fund will provide grants to qualified policyholders to help defray safety-related costs, both those planned or already incurred, related to protecting their workforces from COVID-19. Individual grants can total up to $10,000 or two times the policyholder’s premium, whichever is less. SCIF will review grant applications on a first-come, first-served basis and will discontinue payments when the fund is depleted. However, SCIF will keep all applications in the order they were received in the case that additional funds become available.

Do I Qualify, and How Do I Apply?

These benefits are available if you are an SCIF policyholder. Whether an employee is an “essential worker” or your business an “essential business” is based on the definition of these terms set forth in Gov. Gavin Newsom’s Executive Order N-33-20.

Application information for the Essential Business Support Fund will be posted on State Fund’s website, StateFundCA.com. It does not appear to be posted at this time but will likely be available as early as sometime today. Because it is first-come first-serve and funding is limited, if you are interested we recommend you monitor this closely and apply as soon as possible.

As far as the Essential Worker Support Fund, it appears claims are submitted as normal and the assigned adjustor will assist in determining the benefits the claimant is eligible for, whether normal workers compensation benefits or Essential Worker Support Fund benefits.

If you have any questions or need assistance, please contact us and we can help make sure your business can take advantage of the benefits available.