When a business or other entity decides it doesn’t want to pay premiums to an insurance company, but wants the benefits of being insured, it can become a “self-insured” entity. It can take on many different forms, but usually involves putting money aside to cover the needs of the entity in case it is ever damaged or has other financial obligations. This is common for governmental entities such as cities or towns, but can also happen with schools, religious organizations and even large businesses.
Generally, these entities will need to put up a certain amount of money to qualify for being self-insured, and this amount will vary from state to state. For example, to be a self-insured car driver in California, you have to have the equivalent of a traditional car insurance policy with minimum limits of $10,000 or more. Some states may require a surety bond or deposit before an individual can be considered a self-insured car driver.
Experts recommend that people always carry some form of auto insurance (even in the two states that don’t require it), home insurance and medical insurance for themselves and their family members. This is because it’s impossible to predict the costs of an injury or damage, and these expenses can quickly add up. The good news is that state-based rules that prohibit surprise balance billing and impose ACA coverage mandates typically don’t apply to self-insured plans. However, these plans are still required to follow federal rules such as those regarding COBRA. Минимални осигуровки самоосигуряващо се лице