Self-Insurance
/ˌsɛlf ɪnˈʃʊərəns/
Definitions
- (n.) A risk management practice whereby an individual or organization assumes financial responsibility for its own losses rather than purchasing insurance from a third party.
Many large companies opt for self-insurance to manage employee health benefits more cost-effectively.
Forms
- self-insurance
Related terms
See also
Commentary
Self-insurance is often used by entities with sufficient financial resources to cover potential losses, requiring careful actuarial analysis and compliance with regulatory standards.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.