In today’s tough economic climate businesses of all sizes are trying to find ways to achieve more with less. Self-insurance is an innovative way to do just this. By thinking outside of the box and taking control of your insurance needs, you can reduce your premiums without reducing your coverage.
The first step to becoming self insured is to evaluate your operations and determine what areas have the greatest risk. You can then set aside the necessary amount of capital to cover a set number of claims as regulated by law. You may not have to fully fund required amount immediately, but may be allowed to increase the fund over time. The money can remain in an interest bearing account to help with this process. Once you show that you have met the capital requirements and other mandatory guidelines you can obtain a license from a regulator.
Upon becoming self insured, you will have control over your insurance costs. You will have the right to deny small claims that an insurer would otherwise payout. Or, you can choose to fight larger claims. You can also choose what legal team to use in the event of a law suit. Because the money in the fund is considered a liability, most companies enjoy tax benefits as well. These are just a few of the ways that self-insurance leads to significant savings.
For more information on the cost saving benefits of self-insurance, look to Caitlin Morgan online. They can help you design and administer self-insured plans that customized to your unique business needs