Becoming Self-Insured - The Five Stage Process

Monitoring a Program is an essential part of managing a self-insured plan.

Stop-Loss insurance, often referred to as specific and aggregate insurance will normally be arranged by an independent broker or Third Party Administrator who should provide alternative quotations which will include different retentions and premiums.

The drafting of the plan of benefits is an important part of a self-insurance plan as it determines what benefits are going to be provided by the plan and to who. It also presents one of the greatest potential pitfalls as the plan is normally designed at a time when the range and types of claims that will presented are unknown.

As with any self-insured plan administration is key to running a successful plan.

Prior to adopting a Self-Insured Plan, a feasibility study will need to be performed to compare the costs of traditional commercial indemnity insurance.