The Pennsylvania Workers' Compensation Security Fund (Security Fund) was created on July 1, 1937. The original act was subsequently amended on July 29, 1941, July 2, 1953, October 18, 1975, April 13, 1988 and June 22, 2000. The Workers' Compensation Security Fund Act is found at P.S. 77, 1051 through 1066. The Security Fund regulations are found at 31 Pa. Code, Seciton 165.
The Security Fund serves as a guaranty fund to provide claim payments for those workers entitled to Pennsylvania workers' compensation benefits and Long Shore and Harbor Workers' compensation benefits in certain circumstances when the insurance company originally providing coverage is placed into liquidation by a court in their state of domicile.
The list of liquidated workers' compensation insurance companies can be viewed as a link on the Security Fund's web page.
WCSF Contacts
Insurance Department Contact:
Third Party Administrator:
Workers Compensation Frequently Asked Questions
Indemnity checks are mailed on a bi-weekly basis.
A third party administrator provides claims administration services to the Security Fund. These services include managed care services, auditing provider services, invoices, and coordination with Security Fund outside counsel on matters of litigation.
After your workers' compensation carrier became insolvent, the Security Fund became responsible for your claim payments. The Security Fund is administered in the Bureau of Special Funds within the Pennsylvania Insurance Department, a Commonwealth agency. The third party administrator is responsible for making recommendations for payment by the Security Fund to each claimant. All payments are made through the Commonwealth payment system.
Attorney fees are generally agreed upon by you and your attorney or by a workers' compensation judge. Any questions regarding whether your attorney should continue to receive a portion of your benefits should be referred directly to your attorney.
Recommendation for payment is submitted to the Security Fund by your adjuster after all supporting medical documentation is provided. Payment is typically made within 30 days after the recommendation is received.
Workers' compensation benefits are provided for medical treatment related to your work related injury only. Any medical treatment not directly related to your injury will not be paid.
The Security Fund may require and schedule you to attend an independent medical evaluation every six months if necessary to clarify your medical status.
Your previous insurance company has been liquidated and all claims handling functions are administered by the third party administrator and overseen by the Security Fund.
You or your attorney should submit a settlement demand to your assigned adjuster. The adjuster will review your demand and send it with a recommendation to the Security Fund. The Security Fund will provide the adjuster with a decision indicating whether to settle the case and the amount of settlement. The adjuster will contact you or your attorney with the Security Fund's decision.