Definition of Self insurance:
Insurance of oneself or ones interests by maintaining a fund to cover possible losses rather than by purchasing an insurance policy.
Risk management approach in which an entity sets aside a sum as a protection against a probable loss, instead of transferring the risk by purchasing an insurance policy. This term is a misnomer because no insurance is involved. Properly called risk retention.
How to use Self insurance in a sentence?
- His stress was reduced enormously when he realized hed reached his self insurance goals and would be covered in an emergency.
- You may want to have some self insurance in case things go wrong so that you are always protected by it.
- He had a lot of self insurance , so we knew he would be okay if something were to happen to him.
- Here in Australia, a lot of businesses tend to see credit insurance as a choice of self-insurance, and a cost.
Meaning of Self insurance & Self insurance Definition