Financial risk is the big factor in whether a company self-insures or not.
But smaller businesses self-insure at a much lower rate; HHS estimates that fewer than 30 percent of businesses with 100 to 499 employees self-insure.
But many in the industry say they're seeing steady growth in the rate of medium-sized and smaller-sized businesses that self-insure.
Gerber pointed out that a company that self-insures
large risks and has a large deductible on its coverage is a de facto insurance company, and therefore should approach its loss management as an insurer would.
The North Carolina Self-Insurance Security Association provides workers compensation benefits directly to eligible individuals in the event of a default by any member company that self-insures its workers compensation liabilities in North Carolina.
Pursuant to the Security Act, the Association's Members are all individual companies ("individual self-insurers") and groups of companies ("group self-insurers") that have been approved to self-insure their workers' compensation claims liabilities by the North Carolina Department of Insurance.