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Insurance Coverage - State of Oregon
How does the State insure its risk of loss?
The State uses both self-insurance and commercial policies to insure its risk of loss. This combination has proven to be cost effective for the State.
The Insurance Fund, established by ORS 278.425, is used to provide both commercial and self-insurance coverage for the State of Oregon.
ORS 278.405 grants broad authority to DAS-RM to purchase commercial insurance, develop and administer self-insurance programs, or any combination, thereof, as may be in the best interest of the state. DAS-RM may condition payment of all or part of any loss covered by the Insurance Fund.
What is self-insurance?
Self-insurance is an alternative to the purchase of commercial insurance. The State of Oregon has developed its own formal program of self-insurance to identify, evaluate and pay for its losses.
By insuring in this way, the State has: 
  • Greater control over expected losses and related program expenses
  • Coverage for its unique risks
  • Coverage that is predictably available, not subject to commercial insurance market cycles that result in price fluctuations
  • Coverage at budgetable cost to state agencies.
What types of losses does the State cover with its self-insurance program?
The State virtually self-insures most risk of loss for its:
  • Liability exposures
  • WC exposures
  • Property exposures.
How does the State provide proof of state-self insurance coverage to others?
Certificates of Coverage are available from Risk Management for your agency when you are asked to provide proof of insurance to another party.
What is commercial insurance?
Commercial insurance is a contract in which one party (insurance company) agrees to indemnify or guarantee another party (insured, i.e., state of Oregon) against a covered loss in exchange for a premium.
When is commercial insurance purchased to cover the risk of loss?
The State purchases commercial insurance:
  • To cover state activities that are not prudent to self-insure.
  • As excess coverage.
  • To make unpredictable events more predictable.
Is all risk of loss for the state of Oregon covered either by self-insurance or commercial insurance coverage?
  • No, there are many risks for which the Self-Insurance Fund does not provide coverage or pay the costs.
  • It is important that each agency understand policy terms and conditions of coverage.
For further information contact: DAS Risk Management at (503) 373-7475