Individual Self-Insured Company Management
When we first started doing this in 1995, there were almost a hundred self-insured entities in the state of New Hampshire. Right now, there are only about 25 left, and it’s largely because the commercial market for workers’ comp insurance became so competitive that it was actually less expensive for a lot of companies to buy workers’ comp insurance than it was to be insured by themselves.
To that end, we manage about six of those 25 self-insured businesses. The idea behind self-insurance is to actually write a check to pay for claims, but there are other requirements in the state of New Hampshire: you need to use a licensed third-party administrator, which would be us; you need to provide surety that you’re able to pay claims; you need to buy excess insurance so that catastrophic claims can be paid; and you have to do filings just like all the rest of the self-insurance market.
Self-insurance benefits companies that pay more than a half-million-dollar premium in a commercial insurance market. Self-insurance is a long-term proposition – once you start a self-insured product for your company, you need to own any claims that occur, so you could effectively run that program for 10, 15 or 20 years longer than planned. It requires careful consideration for a company to make the change, but it is worthwhile.
To learn more about our TPA & Workers Comp Services and Individual Self-Insured Company Management, schedule a free consultation by filling out the form below: