Commonwealth Contractors Group Self-Insurance Association (CCGSIA)

In 1978, the Virginia General Assembly formed a legislative committee to study the problem of high Workers’ Compensation premiums for employers and to determine what other states may be doing to combat this problem.

The result of the study was legislation enacted in 1979 by the Virginia General Assembly to allow the formation of Workers’ Compensation Self-Insurance Funds. In Virginia, these entities are referred to as Group Self-Insurance Associations (GSIA’s).

The task of regulating the GSIA’s was assigned to the Virginia Bureau of Insurance and not the Industrial Commission, which handles all other Workers’ Compensation matters. The first Group to be licensed by the Bureau of Insurance began operations on July 1, 1980. Since then, others have been licensed in various categories of business and tremendous interest has been created by the concept in Virginia.

Commonwealth Contractors Group Self-Insurance Association (CCGSIA) was organized in 1981 and licensed on May 1, 1981. Initially formed as a roofing contractor group, the association was originally called the Virginia Association of Roofing Contractors. From the beginning however, the group has accepted non-roofing contractors and in 1985 the name was changed to Commonwealth Contractors Group Self-Insurance Association.

CCGSIA provides workers’ compensation insurance coverage to Virginia businesses engaged in construction, erection or other related occupations. These businesses become members of the Association and share in profits from operations. A Members’ Supervisory Board elected by the members supervises the administration of the Association. The membership agreement contains a provision whereby each member jointly and severally agrees to assume, pay and discharge any liability of the Association under the Virginia Workers’ Compensation Act. For this reason, each member of the Association must provide an annual financial statement showing a positive net worth.

The by-laws of the Association provide, among other things, that the portion of each members’ premium contribution which shall not be required to pay claims, administrative expenses and fees or to fund required or appropriated reserves may be returned to the members of the Association from time to time but only when specifically authorized or approved by the Members’ Supervisory Board and by the Bureau of Insurance.