What are your self-insurance options?
Self-insurance is one way businesses can maintain some control over their own risks, while still being able to purchase protection at higher entry levels when needed, through an insurer - at rates much lower than those offered by traditional programmes.
What can self-insurance programmes cover?
Almost any type of traditional insurance can be adopted to a self-insurance programme. The most common are:
What are the key 3 areas of self-insurance?
The first step to taking a self-insurance approach is to understand your exposure in the 3 core areas:
Your present risk management systems
Your present risk retention
The structure of your insurance
The below graphic demonstrates the 3 key areas. Insurance (risk transfer) is actually a smaller part of the overall hidden management costs.
By retaining more financial risk, adequate risk management controls will need to be in place.
What types of self-insurance are available?
There are 3 main types of self-insurance:
Higher excess levels
Read more here: What is Self-Insurance? – selfinsuranceprotect.co.uk
How do we approach setting up a self-insurance programme?
Retaining more risk, you will be able to control your risk management & claims management processes.
By controlling your risk and increasing your retention levels, you will lower your initial cost of insurance. The more risk you assume, the less you will pay in insurance premiums.
can be more effective.
Insure in the manner you choose.
Self-insurance can motivate you to improve your risk management.
Investment in process, risk management and claims handling is needed.
Balance sheets will need to be robust enough to fund smaller losses.
Any questions? Please don’t hesitate to contact one of our team.
Matthew.email@example.com | Office: 01245 449061