Self-insurance requires:

Question

Quizplus · Accepted Answer

Self-insurance involves taking on the financial risk of potential losses rather than purchasing insurance. This requires saving money to cover possible future losses, as there is no insurance policy to rely on. While implementing risk control methods can help reduce the likelihood and potential severity of losses, owning shares in an insurance company is not necessary for self-insurance, and an analysis for stop loss limits is more relevant for those purchasing insurance. Therefore, the best choice for self-insurance is saving money to cover potential losses.

Self-Insurance Requires