- A risk management method where an entity sets aside a certain amount of money for a possible future loss. An individual or company may choose to self-insure when the potential loss is small or an insurance policy would not be economical.
rainy day fund, security, coverage, protection
Related Terms and Acronyms
- Adequacy of Coverage — Definition,
- An assessment of how well an entity's property and assets are insured against potential losses.
- Financial Responsibility Laws — Definition,
- A type of law that requires an entity to be capable of paying for damages in the event of a potential claim.
- First Loss Insurance Policy — Definition,
- An insurance policy where the policyholder under-insures their assets and will only receive partial coverage in the event of a loss.
- Insurance (insur) — Abbreviation,
- An arrangement where one party provides financial protection to another party for specific damages or losses.
- Life Insurance — Definition, Very Important,
➥ CanEquity offers life insurance.
- An arrangement where an insurer agrees to pay a benefit to one or more beneficiaries in the event of the policyholder's death.
- Mutual Insurance Company — Definition,
- An insurance company where the each policyholder is a part owner of the company.
- Peril — Definition,
- Anything that poses a risk of loss, which may or may not be insurable depending on the potential for risk.
- Reciprocal Insurance Exchange — Definition,
- A group of individuals, firms and corporations that mutually insure each other.
- Reserve — Definition,
- Money retained for some future use.
- Risk Management — Definition,
- The methods used to identify, assess, and prioritize risk and the strategies used to manage them in the most effective and economical way possible.
- Uninsurable Peril — Definition,
- Something that cannot be insured due to a high risk of loss.