Self-insured meaning

Self-insure is a risk management technique in which a company or individual sets aside a pool of money to be used to remedy an unexpected loss.

What is the meaning of 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.

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.

How do I know if I am self-insured?

If you're debt-free and have enough in savings, investments and assets to ensure your family can live off the income generated by them, then you're self-insured.

What are the benefits of self insuring?

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.