What does self-insurance require from employers?

Self-insurance requires employers to hold sufficient assets in reserve for benefits. This approach allows employers to cover their own workers' compensation claims instead of purchasing a traditional insurance policy. By maintaining a designated reserve, employers ensure that they have the financial capacity to pay for any valid claims incurred by their employees.

Self-insurance can be a feasible option for larger employers or those with stable finances, as it can lead to potential cost savings on insurance premiums. However, it also comes with the responsibility of managing claims and ensuring that adequate funds are available to cover any arising liabilities, which is why having sufficient assets in reserve is critical to the self-insured model.

While other options may involve aspects of workers' compensation, they do not pertain directly to the fundamental requirement of self-insurance.