Self-insurance fund

What is an example of self-insurance?

In the United States, self-insurance applies especially to health insurance and may involve, for example, an employer providing certain benefits—like health benefits or disability benefits—to employees and funding claims from a specified pool of assets rather than through an insurance company.

What is self-insured?

Being self-insured means that rather than paying an insurance company to pay medical, dental and vision claims, we pay the claims ourselves, using a third-party administrator to process the claims on our behalf.

What are the advantages of self-insurance?

Self-insurance reduces claims and premium expenses and costs factored into third party claims administration including policy overheads, assumption of risk and underwriting profit. As the self-insured company pays its own claims, claims can be settled and reduce financial loss to business earnings.

Is it better to self-insure?

Self-Insurance is usually a better option when you have more money and can start taking the risk yourself. Deciding to self-insure when you cant pay for losses is just being uninsured.