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If you want to assume all the risk for your organization's losses, up to a certain limit, a self-insured plan can offer substantial savings over other loss-responsive plans.

 

 

How It Works	You assume all the risk for losses at your organization, up to a certain limit. You purchase excess insurance to protect your business from any losses that exceed the retention limit to protect against catastrophic losses. You're responsible for claim-handling within the retention.
Types of Organizations That May Use Self-Insured Plans	Organizations that: want to assume more responsibilities for their own losses in exchange for more control over business insurance costs. experience rising workers' compensation or liability insurance rates, despite a consistent and predictable record of losses. remain vigilant about controlling losses at their company.
Pros and Cons	Must meet all state requirements for self insurance. Eliminates the need to provide collateral requirements on the self-insured amount. Potential to lower your cost because you assume, rather than transfer, expected risk. Provides a tax deduction for premiums paid for the excess insurance. Your ultimate cost is directly related to the effectiveness of your risk management efforts. Shifts more risk to your business, so you must have a comprehensive loss control program. Must assume responsibility for handling claims (or hire a TPA) for losses within the retention limits set in the policy. Increases your administration costs.
What The Hartford Offers	Loss control professionals who can help you target exposures and initiate proven techniques to control losses. Third-party administration services. Excess coverage.

The suggestions and information contained herein are provided for informational purposes only and are not intended to be all-inclusive. Please refer to the issued policy for specific details regarding coverages, conditions and exclusions. In the event of a conflict between the terms contained herein and the policy, the policy terms and conditions will prevail.