Definitions for "self insurance"
Establishing reserves for future losses instead of purchasing insurance.
Some large industrial concerns prefer to set aside their own funds to cover any future losses, rather than insure with an outside insurer. It is a step which should never be taken without the benefit of professional advice first. Whilst day-to-day losses might not prove too much of a financial burden to a really large company, a truly catastrophic event, such as an earthquake, could put it out of business for lack of insurance.
Manner in which an employer provides workers' compensation insurance coverage for its employees by insuring itself rather than by purchasing workers' compensation insurance coverage from a private insurance carrier.
Funded from organisations own financial resources