An arrangement through which some firms and individuals plan to assume all or a portion of their own losses. Self-insurers often establish special funds for this purpose and obtain insurance to cover losses in excess of predetermined amounts. Operations sponsored by a large employer sometimes choose this option for a portion of their insurance.
Alternative to purchasing insurance whereby a person, company or organization assumes all or part of the risk of covering against loss by setting aside reserves that would be used to make any necessary loss payment. (See also, Retention.)
Protecting against losses by setting aside your own money instead of using conventional insurance.
An entity itself assumes the risk of coverage and makes appropriate financial arrangements to pay medical claims direct rather than purchasing insurance from a third party and paying premium for this coverage. (See Reinsurance and Third Party Administrator.)
The practices of an employer or organization assuming complete responsibility for health care losses of its employees. This usually includes setting up a fund against which claim payments are drawn and claims processing is often handled through an administrative service contract with an independent organization.
(WCB) In lieu of purchasing insurance from an insurance carrier, an employer or group of employers may assume the liability for the payment of workers' compensation benefits to employees by depositing securities or a surety bond in an amount required by the Board.
The practice of a group, employer or association assuming complete financial responsibility for health insurance losses incurred by the membership.
insuring yourself by setting aside money to cover possible losses rather than by purchasing an insurance policy
Retention (SIR) - That portion of a risk or potential loss assumed by an insured. It may be in the form of a deductible, self-insurance, or no insurance.
A program financed entirely by the employer for insuring employees instead of purchasing coverage from a commercial carrier.
A system whereby an organization (such as Vanderbilt University) sets aside money to cover any losses that may occur - losses that would ordinarily be covered by an insurance policy. The money that would normally go to premium payments is, instead, paid into a trust fund set up for this purpose to provide a source of payment for losses and litigation expenses incurred.
The ability of an employer to carry its own workers' compensation coverage without purchasing a policy through the private market. Application for approval must be field with the Bureau of Workers' Disability Compensation, Michigan Department of Consumer and Industry Services. Applications may be submitted by a single employer or through a “group self-insurance fund” on behalf of two or more employers in the “same industry.
The employer acts as insurance provider. Instead of paying plan premiums to the insurance company, the employer issues benefits up to a certain dollar amount for the employee and their dependents. Plan benefits are paid to the dentist, or reimbursed to the employee after the services are provided.
A process whereby an employer covers risks by establishing reserves for future losses in lieu of purchasing insurance protection. Also known as self-funding.
The decision to bear the losses that could result from a Business Continuity E/I/E/C rather than take insurance to cover the risk.
A form of risk management through which a firm assumes all or a part of its own losses.
The planned assumption of risk.
company's own insurance fund created to protect the company against claim s upon it. [D03263] PMDT
A method by which an employer or group of employers may secure the payment of workersâ€(tm) compensation or disability benefits for its employees by depositing securities, cash, letters of credit or a surety bond in an amount required by the WCB Chair. (WC law Â§ 50, Â§ 211)
Making financial preparations to meet pure risks by appropriating sufficient funds in advance to meet estimated losses, including enough to cover possible losses in excess of those estimated. Few organizations are large or dispersed enough to make this a sound alternative to insurance.
A term often used to describe the retention of liabilities, arising out of the ownership of property of from some other cause, instead of transferring that risk to an independent third party through the purchase of an insurance policy. The City currently provides self-insurance for a portion of its workers' compensation and general public liability coverage. The City has purchased outside insurance for excess coverage in these areas.
Setting aside of funds by an individual or organization to meet his or its losses, and to absorb fluctuations in the amount of loss, the losses being charged against the funds so set aside or accumulated.
The practice of an employer providing employees with health benefits financed entirely through the internal means of the company, as opposed to purchasing insurance coverage from commercial carriers. Claims processing is often handled through an administrative services contract with an independent organization, often an insurance company.
A decision to bear the losses that could result from a disruption to the business as opposed to taking insurance cover on the Risk.
A program for providing group insurance with benefits financed entirely through the internal means of the policyholder, in place of purchasing coverage from commercial carriers.
A type of insurance in which employers, usually with 100 employees or more, decide to retain the cost risk component of providing health insurance to their own employees rather than contract with an insurance company. Usually, these employers hire a third-party administrator to set up and administer the program.
When a company self-insures, it takes responsibility for paying its own claims, rather than purchasing workers' compensation coverage from an insurance company.
The method of providing employee benefits in which the group purchases no insurance at all (conventional or Stop Loss), thereby assuming full responsibility for the claims.
The systematic provision of a fund by an organisation which does not effect insurance against a risk but hopes to be able to bear losses arising from the risk with the aid of the fund.
A term often used to describe the retention by an entity of a risk of loss arising out of the ownership of property or from some other cause, instead of transferring that risk to an independent third party through the purchase of an insurance policy. It is sometimes accompanied by the setting aside of assets to fund any related losses. Because no insurance is involved, the term self-insurance is a misnomer.
A deliberate plan to meet certain and unplanned losses without insurance or other transfer mechanisms. HARRP offers a program of self insurance and reinsurance to cover its member's claims.
An individual or organization that assumes the financial risk of paying for health care. This term is usually used to describe the type of insurance that an employer provides. When an employer is self-insured, this means that the payer or managed care company manages the employer's funds whether than requiring the employer to pay premiums. Many employers choose to self-insure because they are then exempted from certain insurance laws and also think that they will spend less money in the short run. Employers assume the risks involved and also have full rights to all insurance claim information. Typically, the self-insured employer is a large employer. The employees or patients will not be able to discern if their employer is self-insured easily since all paperwork or benefits cards usually contain the name of the insurance company. Same as Self-Funded. See also Third Party Administrator.
Financial preparation, in accordance with law, for meeting an insured's own risks by appropriating sufficient funds, in advance. Self-insurance does not mean “no insurance”.
insurance which a business organisation finances internally by establishing a fund to meet losses.
An insurance-like strategy for handling oneâ€™s own exposures to loss supported by the financial wherewithal to meet expected losses. Not to be confused with a decision to forego insurance.
The concept of assuming a financial risk oneself, instead of paying an insurance company to take it on. Every policyholder is a self-insurer in terms of paying a deductible and co-payments. Large firms often self-insure frequent, small losses such as damage to their fleet of vehicles or minor workplace injuries. However, to protect injured employees state laws set out requirements for the assumption of workers compensation programs. Self-insurance also refers to employers who assume all or part of the responsibility for paying the health insurance claims of their employees. Firms that self insure for health claims are exempt from state insurance laws mandating the illnesses that group health insurers must cover.
The right of a tenant or landlord to set aside funds to protect against losses rather than purchasing insurance for such protection. In many leases, Self-Insurance is allowed only if the tenant or landlord can meet pre-defined net worth requirements. EXAMPLE: ABC Tenant's lease requires ABC to maintain Liability and All-Risk Insurance throughout the lease term with a reputable insurance company. However, the lease also gives ABC the option to self-insure so long as ABC or it's parent company maintain an ongoing net worth in excess of $500 million.
An arrangement whereby instead of purchasing an insurance policy a party maintains a reserve fund for self-protection against a loss.
setting aside of funds by an individual or organization to meet his or its losses, an accumulation of a fund to absorb fluctuations in the amount of loss, the losses to be charged against the funds so satisfied or accumulated.
To insure oneself against liability - providing your own funds to cover specific losses