Self insurance

self insurance
No insurance. If a company chooses to self insure for fire damage, it does not have insurance for fire damage.

self insurance
protecting against loss by setting aside one's own money. This can be done on a mathematical basis by establishing a separate fund into which funds are deposited on a periodic basis.

Self Insurance
Definition: Setting aside of reserves to cover potential losses, rather than buying insurance.

self insurance The establishment of reserves for future losses instead of purchasing insurance. self-amortizing mortgage A type of mortgage in which all principal is paid off in a specified period...

Formal self insurance is the deliberate decision to pay for otherwise insurable losses out of one's own money.

See also: Personal finance, Franchise, Business technology, Mergers, Acquisitions