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Business Glossary
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Definitions for: self insurance
self insurance

protecting against loss by setting aside one's own money. This can be done on a mathematical basis by establishing a separate fund into which funds are deposited on a periodic basis. Through self insurance it is possible to protect against high-frequency, low-severity losses. To do this through an insurance company would mean having to pay a premium that includes loadings for the company's general expenses, cost of putting the policy on the books, acquisition expenses, premium taxes, and contingencies.

Copyright © 2000, 1995, 1991, 1987 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.

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Industry Associations

Industry Associations
Self-Insurance Institute of America
Represents actuaries, attorneys, claims adjusters, consultants, corporations, employers, insurance companies, risk managers, third party administrators, and others involved or interested in self-insurance. Aims to foster and promote alternative methods of ...

Members: 1,200
Founded: 1981
Dues: regular corporate, $1,295 annual; self-insured employer (minimum), $250 annual; contributing corporate, $2,500 annual; supporting corporate, $5,000 annual; sustaining corporate, $10,000 annual; premier corporate, $25,000 annual.