Self-Insurance

Self-insurance is a risk management strategy where an individual or organization sets aside money to cover potential losses instead of purchasing an insurance policy. This means they take on the financial responsibility themselves if an unexpected event occurs, such as damage to property or medical expenses. Self-insurance is often used by businesses with enough resources to handle these risks, and individuals might also self-insure for smaller, manageable risks. It can lead to savings on premiums but requires careful financial planning and a thorough understanding of potential risks.