Self Insurance

Definition

  • 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.

Synonyms
coverage, protection, security, rainy day fund

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,
    • An arrangement where an insurer agrees to pay a benefit to one or more beneficiaries in the event of the policyholder's death.
    CanEquity offers life insurance.
  • 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.
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