Alternative Risk...

Self-Insurance

As an alternative to conventional coverage, self-insurance is an opportunity for an organization to improve the quality of its risk management program.  Instead of purchasing insurance from a carrier, the self-insured accepts the responsibility for the payment of losses up to a predetermined level.  Few companies desire to be totally self-insured. Accordingly, most programs limit the company's exposure to an acceptable level through one or both of the following kinds of excess insurance.

Specific excess insurance covers each occurrence up to the policy limit in excess of the self-insured retention selected. This prevents a single accident from costing the company an excessive amount.
Aggregate excess insurance covers total losses up to the policy limit in excess of the total self-insured retention selected.

By use of excess insurance, we can design self-insurance programs that limit your risk to an acceptable level.  

To obtain approval to become self-insured, a company must meet the appropriate state's qualification requirements, which includes demonstrating the financial ability to pay future losses. 

Advantages:

• Lower fixed costs
• Maximum control over program
• Investment income/cash flow benefits
• Incentive to control losses
• Hewitt, Coleman's aggressive claim management services can dramatically improve a self-insured's bottom line
• Improved claims performance through tailored loss control/safety programs