Why Self-Insurance?

With workers' compensation costs rising, more and more large employers are considering self-insurance. Certain kinds of losses can be predictable and self-insurance is a more efficient way to pay for those losses.

Reduced costs can come from several areas, including:

1. Lower fixed costs (program administration)
2. Improved claims management
3. Reduced losses through better loss control
4. Improved cash flow

In addition, the self-insured employer gains more overall control of claims and receives more detailed claims information from the claims administrator.