A school district with a self‐insured workers’ compensation insurance program for more than 30 years needed to eliminate ongoing funding liabilities and move to a guaranteed cost insurance program because of projected budget reductions following the economic downturn of 2008. We provided several options to contain the legacy liabilities by purchasing a new ground-up insurance policy using existing reserves & cash flow and eliminating the letters of credit, thereby allowing the district to buy traditional guaranteed cost workers compensation insurance going forward.