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A method of managing risk by setting aside a pool of money to be used if an unexpected loss occurs. Theoretically, one can self-insure against any type of loss.
Wiki User
∙ 9y ago
To become self-insured, an individual or organization sets aside funds to cover potential risks and liabilities instead of purchasing traditional insurance policies. This approach requires careful financial planning and risk assessment to ensure adequate coverage in case of unexpected events. Self-insurance is often used by large corporations or individuals with high net worth who can afford to cover potential losses without relying on insurance companies.
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