Advantages Of Self Insurance – Going Out On Your Own
In my last few posts, I did make Workers Comp self insurance seem to be more of a hassle than it is really worth. My main reason for posting the 11 concerns was to make companies examine their program more carefully before diving into what can be an onerous task. However, self insurance is worth the time, energy, and $$$.
We have helped a number of governmental organizations and private employers analyze if going at it own your own is right for their Workers Compensation situation.

Usually, the main barrier is that the organization cannot supply the Law of Large Numbers with enough premium or claims to make it a worthwhile venture. Barely qualifying for self insurance can make the changeover a roll of the dice.
Many governmental organizations have switched away from voluntary market insurance or large deductible programs over the last 20 years. The task can be difficult. The rewards remain great if patience is one of the Risk Manager’s attributes.
Instead of making this article long and boring, I will post a list tomorrow of the advantages of self insurance. I will go into detail on each one.
If you are reading this and you are self insured, what advantages do you see over regular market insurance? If you are thinking about becoming self insured, what would be the future advantages that would see for your company? If you prefer first-dollar Workers Comp insurance, what do you see as the advantages of fully transferring the risk to your carrier?
By the way, the preceding sentence is not necessarily true. Why? I am full of questions this evening. You can reply to this post or drop me an email with comments if you wish.
Next Up – The List Of Self Insurance Advantages
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