Self-Insurance
Self-Insurance
Under a self-insured arrangement, employers pay costs as they are incurred. An employer can be self-insured as an individual or participate in a self-insured group. Self-insurance is a great option for any employer with $200,000 or more in annual premium and excellent loss history.
Advantages
- Cash flow-claims pay as you go
- Control over claims and loss control
- Low fixed cost
- Investment income
Challenges
- Non-deductibility of reserves
- Increased responsibility
- Volatility-controlled by excess
- Qualifications (Don’t worry-we walk you and your client through every step!)
Qualifications
- Must have an excess WC policy (our affiliates represent three major carriers with A.M. Best rating of A or A+)
- Must have state-approved TPA
- Must request approval from State
- Must have security in form of a Letter of Credit
- Excess will require minimum of the standard premium for aggregate
