Self-Insurance for Employers.

Self-insurance for employers in the context of workers' compensation means that instead of purchasing insurance from a provider, a company sets aside its own funds to pay for employee injuries and related costs. This approach allows employers to manage their risks and potentially save on insurance premiums. However, it also involves taking on the financial responsibility directly, including administrative costs and claims processing. Companies that choose self-insurance must meet specific state requirements and often demonstrate their financial stability to ensure they can handle potential claims.