Self Insurance Programs

Self-insurance is a way for a business to lower ongoing premium expenditures and to take control of low-level risks within the organization. This is achieved by the business becoming its own insurer. This can be for a certain level of risk or a certain type of risk. The business creates a fund of money and manages the fund and any claims asserted.

Some risks cannot be self-insured without being approved by your state. Workers’ Compensation can be self-insured, but requires approval and the meeting of certain guidelines. Mandatory auto liability insurance can be self-insured only by meeting state requirements.

But, for enterprises that are large enough, self-insurance planning as part of an overall risk plan makes great sense. Why pay an insurer when you can pay yourself? Plus, in most instances the company is not insuring the entire risk. Instead it is self-insuring a portion of the risk.

Bartlett Actuarial Group can assist by providing a retention analysis which will show the amount of risk that you company should retain.

Bartlett can also assist by providing an annual reserve analysis to ensure that your company is properly reserved for future claims.