Ep 19: How to Self-Insure

When you choose to bear the financial burden of an adverse event, you are engaging in self-insurance. You may self-insure by assuming the entirety or portion of a financial risk. Self-insurance is a risk management strategy that involves paying for losses that occur from adverse events that are not covered by insurance. However, because you are assuming the financial risk, you become responsible for managing it. The goal of self-insurance is to save money on insurance premiums by paying for losses yourself.