Self Insurance

What is Business Self Insurance?

Self insurance is when a business sets aside funds to manage a portion of its own risk rather than rely on insurance cover.

This method of insurance can be applied to most forms of risk, although it is unusual for a business to self insure all of its risk. The benefit to the business is that insurance premiums and therefore operating expenses are reduced.

For further information on self insurance see the Wikipedia definition.

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Last modified March 23rd, 2016 by Team

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