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Self-Insured Programs from Cal-Nevada Insurance Agency

Companies that have the financial capacity to take on more responsibility for their workers compensation, business auto or other commercial insurance risk, may be interested in a loss-sensitive insurance program. You may also self-insure some employee benefits offerings.

Cal-Nevada Insurance Agency offers self-insured programs for businesses in San Francisco and throughout the northern California, Arizona and Lake Vegas Nevada areas, and we can help you determine if such an option is right for you.

The Advantages of Self-Insurance

Groups that have few or no insurance claims in a line of insurance can experience great savings by moving to a self-insured or partially self-insured program. You save on premiums and commissions by providing all of your own insurance or by agreeing to a high deductible with your insurer (this is partial self-insurance).

If you self-insure, you get to customize your insurance plan exactly as you want since you write the contract; although, most states regulate workers compensation, and many mandate certain levels of liability insurance for business auto and possibly other liability concerns.

Under self-insurance programs, you also have more authority over settlements. For example, you could opt to fight against a claim that would otherwise go to settlement under traditional insurance. You might think the risk of legal costs is worth it just to get a chance at exoneration or proving an accusation is untrue.

Some of the Realities

Keep in mind that self-insuring requires high capital reserves that could all be used by a severe claim. You also may need help administering your self-insurance program since the red tape on insurance can be pretty thick. California is notable for its regulation of some self-insured sectors, and other states have established certain revenue and asset minimums to make sure companies have the ability to pay potential victims.

If you choose to self-insure, you need to have a systematic savings plan so that you always have money set aside for legal defense and settlements. You also need to have active and effective loss-control programs. At Cal-Nevada Insurance Agency, we can help you with all that’s required to establish and maintain a good self-insurance program.

High financial capacity and low claims frequency could make you a good candidate for self-insurance.

For further information or to schedule a meeting with an advisor, contact us at (866) 670-5948, or e-mail us at