Self-Insured/Partially Self-Insured Programs

If your company has the financial capacity to take on substantially more of its own workers compensation risk, a loss-sensitive program could be something that would appeal to you.

Evans, Pires & Leonard can help you run the due diligence required to determine if you are a good candidate for this potentially money-saving insurance option.

These programs start by assigning your company a high deductible, so—if you have a claim—you will pay the first block of whatever is owed. You can imagine the great savings for companies that have few or no claims. Under this setup, you also govern the settlements for claims that fall under your self-insured program. For example, an insurer might want to settle a claim instead of fight to save on legal costs even if you are innocent. Under a self-insurance program, you might think the damage to your reputation is worth the fight and the legal costs to exonerate your company in the public eye.

The main risk with these self-retention programs is that there could be one very large claim or several cumulative claims that would require you to pay out that large deductible. If you are willing to take on that risk and avoid it, you will save substantially on premiums.

Some lines of insurance, most notably workers compensation and business auto liability, usually require state approval for a company to self-insure. That is to protect those who would be harmed if the company couldn’t actually afford its retention, also known as a deductible or co-pay. Oftentimes, the requirements are set such that only large companies can qualify.

We’ll help you take a look at your risks and calculate your big, low-risk claims along with your cumulative payouts on smaller but higher-frequency claims. Together, we can see if you have the capital to cover such losses on a certain line of insurance, such as cyber liability or property damage or another specific type of coverage you carry. If you think your chances of paying out are pretty low and your ability to pay is high enough, one of our Evans, Pires & Leonard advisors will discuss the possibility of saving through a self-insurance program.

You can choose to be fully or partially self-insured.

With Evans, Pires & Leonard, you’re not a policy to us. We create a relationship with our customers through earned trust, integrity, experience, and knowledge. Give us a call at 888.776.2932 or email us, or if you prefer fill out and return the convenient form on this page. One of our professionals will contact you to discuss your insurance needs and our alternative solutions in helping to protect you. Since 1967, we have been serving the communities from Tolland to Glastonbury to Portland and Old Saybrook.