What are the benefits of Self-Insuring?
Operational • Improved employee/employer relationship • Flexibility and more control of claim handling, loss control and claim reporting • Flexible design plans to compliment operational changes Financial • Cash flow through investment income on losses (traditionally retained by the insurance company) • Greatly reduced state assessments and fees • Administrative costs far less than insurance carrier overhead • Limited financial exposure with proper program structure Cost stability • Minimal fluctuations in workers’ comp budgeting year-to-year • Annual renewal process eliminated • Not subject to insurance market changes • More control over long term costs
