As belts continue to tighten, self-insurance is becoming an increasingly attractive prospect for saving money within public and private sectors alike.
It has been around since the swinging 60’s but really started gaining ground back in the late 80’s and early 90’s. During this time there was a limited market for commercial public sector insurance such as Public Liability, Employers Liability and Property Damage.
As a result insurers were able to command very high premiums to cover any risks. Commercial insurance (e.g. covering catastrophes) had large deductibles of anything between £250k to £1m.
So organisations were left with two choices: Pay the higher premiums or self-insure becoming self-insured was the logical option. Since that time people have become more comfortable with higher deductibles.
So how exactly do you take on self-insurance? Continue reading to find out...