The Alabama Home Builders Self Insurers Fund

The Alabama Home Builders Self Insurers Fund guide.

5/9/20237 min read

field of purple flower beside house
field of purple flower beside house

Alabama Home Builders Self Insurers Fund: Comprehensive Guide

The Alabama Home Builders Self Insurers Fund (AHBSIF) is a unique program designed to provide workers' compensation coverage for home builders, contractors, and related businesses operating within the state of Alabama. Established in 1992, the AHBSIF has been providing reliable and cost-effective coverage to its members for decades. In this comprehensive guide, we will discuss the key aspects of the AHBSIF, including its benefits, eligibility requirements, and how to enroll in the program.

What is the AHBSIF?

The Alabama Home Builders Self Insurers Fund is a not-for-profit, self-insurance fund that offers workers' compensation coverage to its member businesses. Created in response to the rising costs of traditional workers' compensation insurance, the AHBSIF aims to provide an affordable and stable alternative for Alabama home builders and contractors. The fund operates under the oversight of the Alabama Department of Labor and is governed by a board of trustees composed of experienced industry professionals.

Benefits of Joining the AHBSIF

Joining the AHBSIF offers several advantages for eligible businesses, including:

  1. Cost Savings: By pooling resources and effectively managing claims, the AHBSIF can offer competitive rates for workers' compensation coverage, often resulting in substantial cost savings for its members.

  2. Stability: As a self-insured fund, the AHBSIF is not subject to the rate fluctuations and uncertainties of the traditional insurance market. This ensures a stable and predictable pricing structure for its members.

  3. Expertise: The AHBSIF is managed by a team of industry experts with extensive knowledge of the home building and construction sector. This expertise allows the fund to provide tailored coverage and risk management services specifically designed for its members.

  4. Dividend Opportunities: As a not-for-profit organization, the AHBSIF returns excess funds to its members in the form of dividends. This can provide an additional financial incentive for businesses to maintain safe working environments and minimize claims.

  5. Comprehensive Coverage: The AHBSIF provides coverage that meets or exceeds the workers' compensation requirements set forth by the Alabama Workers' Compensation Law. This ensures that member businesses are in compliance with state regulations and adequately protected in the event of a work-related injury or illness.

Eligibility Requirements

To be eligible for membership in the AHBSIF, a business must meet the following criteria:

  1. Operate within the home building, construction, or related industries in the state of Alabama.

  2. Be a member in good standing with the Home Builders Association of Alabama (HBAA).

  3. Have a satisfactory loss history and demonstrate a commitment to maintaining a safe work environment.

How to Enroll in the AHBSIF

Enrolling in the Alabama Home Builders Self Insurers Fund involves the following steps:

  1. Contact the AHBSIF: Reach out to the AHBSIF by visiting their website or calling their office at (205) 868-2000. A representative will provide you with the necessary application materials and guide you through the enrollment process.

  2. Complete the Application: Fill out the required application forms, providing detailed information about your business, including its operations, payroll, and loss history.

  3. Submit Documentation: Along with your application, submit any required documentation, such as proof of HBAA membership, financial statements, and safety records.

  4. Underwriting Review: The AHBSIF will review your application and assess your business's risk profile. This may involve a site visit, interviews with key personnel, and a thorough evaluation of your safety practices and procedures.

  5. Approval and Premium Calculation: If your application is approved, the AHBSIF will determine your premium based on various factors, such as your payroll, classification codes, and experience modification factor. You will receive a quote for your workers' compensation coverage, which you can accept or decline.

  6. Payment and Coverage Activation: Upon accepting the quote, you will be required to submit payment for the calculated premium. Once payment is received, your coverage with the AHBSIF will become active, and you will receive a certificate of insurance as proof of coverage.

  7. Ongoing Membership: As a member of the AHBSIF, you will be expected to maintain your HBAA membership, adhere to the fund's safety and risk management guidelines, and promptly report any work-related injuries or illnesses. You will also be required to participate in annual audits to ensure accurate premium calculations and compliance with the fund's requirements.


The Alabama Home Builders Self Insurers Fund offers a valuable alternative to traditional workers' compensation insurance for businesses in the home building and construction industries. By providing cost-effective coverage, stable pricing, and tailored risk management services, the AHBSIF can help protect both employers and employees in the event of a work-related injury or illness.

To learn more about the AHBSIF and other workers' compensation options in Alabama, visit the Alabama Department of Labor's website or consult with an insurance professional specializing in workers' compensation coverage. By understanding your options and selecting the best coverage for your business, you can safeguard your company's financial well-being while promoting a safe and healthy work environment for your employees.

Please note that this article is for informational purposes only and should not be considered legal or financial advice. Always consult with a licensed insurance agent or attorney to discuss your specific situation and ensure compliance with applicable laws and regulations.

What is the Alabama Home Builders Self Insurers Fund?

The Alabama Home Builders Self Insurers Fund (AHBSIF) is a non-profit organization that provides workers' compensation insurance to Alabama-based home builders and contractors. It was established in 1984 to provide a cost-effective and reliable insurance option for those in the home building industry.

Who is eligible to join AHBSIF?

Any Alabama-based home builder or contractor who is licensed by the state and has a valid workers' compensation insurance policy can apply to join AHBSIF.

How does AHBSIF differ from traditional insurance companies?

AHBSIF is a self-insured group, which means that members of the organization pool their resources to provide workers' compensation coverage to each other. This allows members to enjoy more stable rates and greater control over their insurance coverage.

What types of coverage does AHBSIF provide?

AHBSIF provides workers' compensation coverage for injuries and illnesses sustained by employees while on the job. This includes medical expenses, lost wages, and rehabilitation costs.

How are rates determined for AHBSIF members?

Rates for AHBSIF members are based on their individual loss history, which takes into account their past claims experience and overall safety record.

Is AHBSIF regulated by the state of Alabama?

Yes, AHBSIF is regulated by the Alabama Department of Insurance and is subject to all applicable state laws and regulations.

How does AHBSIF ensure that its members are in compliance with state workers' compensation laws?

AHBSIF provides regular training and education to its members to ensure that they are aware of their obligations under state workers' compensation laws. The organization also conducts regular audits of its members to ensure compliance.

What happens if an AHBSIF member has a workers' compensation claim?

If an AHBSIF member has a workers' compensation claim, they should immediately report the incident to AHBSIF. The organization will then provide guidance on how to proceed with the claim.

How does AHBSIF handle claims?

AHBSIF has a dedicated claims management team that works with members to manage and resolve workers' compensation claims. The organization strives to provide timely and efficient claims handling to minimize disruption to members' businesses.

How does AHBSIF ensure that members receive high-quality medical care?

AHBSIF has a network of medical providers who have been selected for their expertise in treating work-related injuries and illnesses. Members are encouraged to use these providers to ensure that they receive the best possible care.

How can AHBSIF members control their workers' compensation costs?

AHBSIF provides a range of resources and services to help members manage their workers' compensation costs. These include safety training, claims management, and access to cost-saving programs.

How is AHBSIF funded?

AHBSIF is funded by its members, who pay premiums based on their individual risk profiles. The organization also earns investment income on its reserves.

How is AHBSIF governed?

AHBSIF is governed by a board of trustees, which is made up of representatives from its member companies. The board is responsible for overseeing the organization's operations and ensuring that it remains financially stable.

Can AHBSIF members choose their own medical providers?

Yes, AHBSIF members have the freedom to choose their own medical providers. However, using providers within the organization's network can help to ensure that members receive high-quality care at a lower cost.

How does AHBSIF support workplace safety?

AHBSIF provides regular safety training and education to its members to help prevent workplace accidents and injuries. The organization also conducts regular safety audits to identify and address potential hazards.

What is the process for joining AHBSIF?

To join AHBSIF, interested home builders or contractors should contact the organization to request an application. AHBSIF will review the application to determine eligibility and provide a quote for coverage based on the applicant's individual risk profile.

How often are AHBSIF rates reviewed?

AHBSIF reviews rates on an annual basis to ensure that they remain competitive and reflect changes in member loss history and other factors.

What happens if an AHBSIF member cancels their coverage?

If an AHBSIF member cancels their coverage, they may be required to pay a penalty or assessment to cover any outstanding claims or expenses. AHBSIF can provide guidance on the cancellation process and any associated fees.

How does AHBSIF protect members' privacy?

AHBSIF takes privacy and data security very seriously. The organization complies with all applicable laws and regulations related to data protection and has implemented a range of measures to protect members' personal and financial information.

How can AHBSIF members get in touch with the organization?

AHBSIF has a dedicated customer service team that can be reached by phone or email during business hours. Members can also log in to the organization's online portal to access their account information and resources.

How does AHBSIF handle disputes?

AHBSIF has a formal dispute resolution process in place to handle any disagreements or disputes between members. The organization encourages open communication and transparency to resolve issues as quickly and fairly as possible.

How does AHBSIF stay up to date with changes in workers' compensation laws and regulations?

AHBSIF closely monitors changes in state and federal workers' compensation laws and regulations to ensure that its policies and procedures remain in compliance. The organization also participates in industry associations and advocacy groups to stay informed and influence policy decisions.

How does AHBSIF contribute to the community?

AHBSIF is committed to supporting the local community and regularly participates in charitable initiatives and events. The organization also provides scholarships to students pursuing careers in the construction industry.

How can contractors or home builders apply for membership in AHBSIF?

Contractors or home builders who wish to apply for membership in AHBSIF can visit the organization's website or contact its customer service team for more information on the application process.