There are situations when a company decides to assume responsibility for any potential financial issues instead of transferring these risks to a third party service such as an insurance company. With this strategy, the business will be responsible for paying the incurred loses derived from assuming the risk on their own. The company will receive funding to pay for the losses using their working capital, appropriated savings or reserves, and a general savings from the business itself.
The possibility of self-insurance relies on the predictability and measurability of the risk to be assumed. The company has the capacity to set aside money for possible future losses in relation to this. Accordingly, in order for risks to be self-insurable, it should occur with uncertainty in the future wherewith the company and the people behind it will have no control over the risks and the resulting damage can be estimated. The idea behind self-insurance is that by retaining, computing the risks, and paying for the possible losses or claims from captive or on balance sheet appropriation, the overall impact is cheaper when compared with buying commercially available insurance packages. This happens because the carrying costs of commercial insurance are hereby eliminated.
More Risk Means More Reward
With these ideas in mind, we offer self-insurance services in order to:
- Help companies determine if they are qualified for self-insurance. It cannot be denied that some employees in a company may twist facts and figures in order to arrive at a favourable figure and impression for their claims. But with our experts working closely with your risk management team, we will be able to fully determine your suitability for self-insurance and save you money on such claims.
- Even if you believe that your company does not possess the right determining factors in order to qualify for self-insurance, our team will still help you find ways in order to qualify for this specific product. It takes an independent opinion coming from a third party service like us in order to determine if self-insurance is a fruitful decision for your company. Our clients from retail, manufacturing, distribution, and even from non-profit/religious organizations can attest to our effective means of partnering when it comes to self-insurance.
- Guide you to the direction of either group or individual plans. One of the ways for companies to be self–insured is to provide individual or group plans such as retirement packages that are underwritten by third party insurance companies. With that, we shall be able to help you decide which direction to follow in order to make it more financially fruitful for both your company and your employees.
- Our job is not yet through once we have agreed upon the self-insurance programs to undertake. We shall continue to offer you assistance and even manage the program for your own financial benefit.
Give us a call right now and let us discuss self-insurance strategies together. It is our responsibility to help you manage risks and other critical issues even if you want to be solely responsible for these.