Insurance vs. Self-Insurance - What is the difference?

In traditional insurance contracts, you simply pay a premium and then claim from the insurance company if the insured event occurs.

Self-insurance is a process of setting aside a fund either within your own business or through a subsidiary or an associated company in order to pay for the costs to the business should a loss occur.

Depending upon your business circumstances there can be many advantages to some degree of self-insurance.

Put simply, if you are spending in excess of £100,000 a year on conventional insurances, there is every chance you could benefit from a degree of self-insurance.

What next?

For Oval to carry out a proper review of your insurance exposures and to advise whether self-insurance would be right for your business, we need a slightly longer lead-in time than for conventional insurance renewals.

For most businesses, this means a minimum of 8 weeks before your conventional renewal date. Therefore please contact us as soon as possible to advise when your insurances fall due for renewal and we will agree a timetable for discussion.