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SELF-INSURANCE BASICS WHAT IS A SELF-INSURED STRATEGY? Self-insurance is an alternative to costly insurance traditionally purchased from the Commercial Insurance market. This strategy allows the business owner to assume direct control and responsibility for providing the self-funded program to transfer the risk of liability claims and property losses, and for providing Employee Benefit coverage to its employees. Specifically, the Business Owner manages and controls the assets of the Self-Insured plan, not some commercial for profit insurance company. The benefits to self-insuring can be significant: ● Control of claims and the claim settlement process. One self insured group recently reported that prior to their self insured program, 70% of all liability claims were being closed with payment to close, and only 30% were closed with no payment. TODAY, 30% of all claims are closed with a settlement payment, and 70% are being closed with no payment. An attitude with regard to the definition of negligent and non-negligent has been reestablished. ● The ability to preserve the employee benefit standard desired over time (the ability to select their own doctors, expanded benefits, flexible and optional new benefits, etc.). ● The ability to obtain the most for your dollar of expense thru cost containment programs and better money management. In summary, the Business Owner retains control of how the money is spent. This pay-as-you-go self-insurance program is protected thru the purchase of STOP LOSS Insurance, to cap the maximum the Self-Insurance Fund may be liable for, and the purchase of reinsurance for coverage in excess or in addition to the Self-Insured’s limit selected to retain.
	F. Darrell Lindsey State Approved Captive/RRG Manager U.S. State Licensed Agent/Broker
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