Self-Insurer

What Does Self-Insurer Mean?

A self-insurer is a business entity that manages its employees’ future insurance needs internally rather than outsourcing them to an insurance company. It achieves this by allocating funds from its income or investments specifically for this purpose.

Insuranceopedia Explains Self-Insurer

The future benefits of workers or employees, such as healthcare and pension funds, may become the sole responsibility of the employer if it is a corporate entity with sufficient financial resources to match the coverage an insurance company would provide.

Before an employer can qualify as a self-insurer, it must be assessed by a regulatory body. This eligibility is then periodically reviewed to ensure compliance and financial capability.