The process of establishing a monetary fund to cover the cost of a loss is called:

Question

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Self-insurance is the process of setting aside funds to cover the cost of a potential loss. This is different from risk shifting, which involves transferring the risk to another party, such as through insurance or a contract, or risk avoidance, which involves avoiding the activity altogether. Risk reduction refers to taking steps to minimize the likelihood or severity of a potential loss. Endorsement is a term used in insurance to refer to a modification or addition to the policy.

The Process of Establishing a Monetary Fund to Cover the Cost