Advantages vs disadvantages for self insurance
2006-12-13 07:17:32 · 5 answers · asked by satouqi 3 in Business & Finance ➔ Insurance
Oh absolutely it works. It's like being in charge of your own lottery system. You stack the odds in your favor rather than the insurance companies stacking it in theirs. The thing is, you just need to have enough money to be able to make simultaneous claims at any one time, or you go out of business. Some states will tell you how much you need to have in the bank in order to self insure. I believe in some states it is one million dollars on liquid funds available.
2006-12-13 12:56:24 · answer #1 · answered by New Millennium Minds 3 · 0⤊ 0⤋
It usually saves the company money. I know a company that did this and they cheated the employees and familes of the employees regarding payments. They could have been sued, but the legal fees would far out way the medical cost. Of course, they knew that.
2006-12-13 07:28:30 · answer #2 · answered by ThePerfectStranger 6 · 0⤊ 0⤋
For some companies being self insured is reason to protmote better health and safety, fire prevention etc.
2006-12-13 07:25:32 · answer #3 · answered by Anonymous · 0⤊ 0⤋
My company does it and it seems to work.
The disadvantage is not knowing what your medical expense will be each month. It can really vary.
2006-12-13 07:30:41 · answer #4 · answered by Jordan K 3 · 0⤊ 0⤋
yes. It works. It saves them money over buying a policy.
2006-12-13 07:23:39 · answer #5 · answered by Anonymous 7 · 0⤊ 0⤋