Managing and mitigating risks through insurance is one of the best, most accessible strategies to make sure you’re limiting losses. If you’re reading this article, you’ve probably considered a self-insurance model to cover your risks.
However, before fully taking on risk by way of self-insurance, you should understand how it differs from other insurance structures.
In addition, you need to thoroughly grasp both the benefits and disadvantages that a self-insurance structure comes with and know precisely how to prepare for the best AND worst-case scenarios.
In this article, you’ll find crucial information about what a self-insurance strategy is, how it compares to other models, and what it is best suited for. You’ll also learn what mechanisms and risk management approaches you need to set in place for your self-insurance model to work as it was intended to.