Review:
Self Insurance
overall review score: 4.2
⭐⭐⭐⭐⭐
score is between 0 and 5
Self-insurance is a risk management strategy in which an individual or organization chooses to cover the potential costs of certain risks themselves, rather than purchasing insurance from a third-party provider.
Key Features
- Policyholder assumes financial responsibility for potential losses
- Flexible coverage options
- Potential cost savings in the long run
Pros
- Greater control over coverage and claims process
- Potential for cost savings in premiums and fees
- Ability to customize coverage to specific needs
Cons
- High financial risk if large claims occur
- May require significant capital reserves for self-funding