What Does Self-Insurer Mean?
A self-insurer is a business entity that takes care of its employees’ future insurance needs instead of passing those needs on to an insurance company. It does this by setting aside money from its own income or investments specifically for this purpose.
Insuranceopedia Explains Self-Insurer
The future benefits of the workers or employees, including healthcare and pension funds, can be the sole responsibility of the employer if it is a corporate body with enough financial resources to rival the coverage that an insurance company could provide.
An employer must be evaluated by a regulating body before it can become a self-insurer. Their eligibility is then re-evaluated after a certain period of time.