Self insurance (also known as self funding) allows small business owners to create and manage their own insurance plans, without being subjected to the restrictions and costs of working with a larger traditional insurance carriers. However, self insurance does come with a high level of risk and liability.
We want to preface this article by stating that self insurance is generally NOT the best choice for small business owners. It can be a huge administrative burden, and there are both legal and financial risks to self funding your insurance.
