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Self Insurance For Workers Compensation – Has Big Advantages


 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.

Picture Of Woman Standing Self Insurance With Big Dollar Sign

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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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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