History & Charter

As the 1990s approached, workers' compensation in Rhode Island was in trouble. Claim costs were skyrocketing.  In 1990, the NCCI requested a 123 percent loss cost increase.
The Rhode Island General Assembly enacted legislation that year creating the State Compensation Insurance Fund (SCIF). The statute states, "The fund must be organized and, except as provided in subsection (c) of this section, 27-7.2-9.1 (c), or elsewhere in this chapter, operated as a domestic mutual insurance company." In July 1992, the name of the fund was changed to The Beacon Mutual Insurance Company.  Beacon wrote its first policy on August 13, 1992.
Beacon operates as a competitive mutual workers’ compensation insurer. It is not a state or quasi-state agency. Beacon’s Charter specifically provides the funds of the company can only be used for the company’s purposes.
Beacon provides only workers’ compensation and related insurance, and insures only Rhode Island businesses for their Rhode Island operations – and in limited circumstances, for the out-of-state operations of Rhode Island businesses through a third-party insurer. Beacon is a one-line, one-state insurer.