Federal law allows certain employer types the option to reimburse the state for unemployment benefits paid to their separated employees instead of paying state unemployment insurance (SUI) tax. They are known as “reimbursing employers.”

Employers may be overpaying for unemployment benefit coverage and supplementing other employers within the SUI program. This is where we can help save your client money and provide financial security by transferring risk to a fiscally strong insurance company, which allows your clients to allocate their money toward their mission.

Eligible employer types:

  1. 501(c)(3) nonprofits
  2. Public entities (state and local government)
  3. Tribal governments and their wholly owned enterprises

Our programs are designed for employers that have at least $1 million in gross annual payroll, which is typically 15 or more employees. The larger the payroll, the more likely it is for the employer to be a good candidate for becoming a reimbursing employer.

Coverage we offer

The Unemployment Contractual Liability (UCL) policy provides coverage for employers that choose to transfer the cost of their unemployment benefits to us, subject to meeting the terms and conditions of the policy.

The UCL policy is a proprietary and admitted form with customized solutions that can meet the needs and risk tolerance of each policyholder, and is available in Washington D.C. and all states except NY.*

Coverages Include:

  • First Dollar Insurance: Coverage attaches immediately at the first dollar of unemployment benefit charges. This option provides peace of mind and the greatest degree of budgetary certainty.
  • Stop-Loss Insurance: Coverage attaches in excess of an agreed-upon self-insured retention, meaning the policyholder will reimburse the state for benefits until the self-insured retention limit is met.

Services Included:

  • Professional unemployment claims management
  • Unemployment hearing representation
  • Unemployment cost management education and training
  • State reimbursement
  • Transparent billing and accounting

Learn how an Unemployment Contractual Liability policy could help save you money.


*In New York a Reimbursing Employer Unemployment Bond is available on a Stop-Loss basis. It is an admitted product in the state and Great American will pay the state for all benefits taking the administrative burden off the employer.

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