What is one advantage of self-insurance?

One advantage of self-insurance is greater control over claims management and costs. When an individual or entity chooses to self-insure, they retain the financial responsibility for any potential losses rather than transferring that risk to an insurance company. This allows them to handle claims internally, giving them the ability to make decisions based on their specific circumstances and needs, which can lead to more efficient claims processing.

Additionally, by managing claims internally, the self-insured can implement their own strategies for loss prevention and mitigation, as they are more directly invested in the outcome. This not only allows for potentially lower overall costs but can also lead to more tailored risk management practices that align closely with their business operations. Therefore, the level of control over both claims handling and associated costs is a significant advantage of self-insurance.