Self-Insurance allows an individual or business to:

Self-Insurance is a strategy that allows an individual or business to manage their own risk rather than relying on insurance coverage from an insurance company. By choosing to self-insure, the entity sets aside funds to cover potential losses rather than transferring that risk entirely to an insurer. This means they are prepared to either partially or fully bear the financial responsibility associated with any losses that may occur.

This approach can be especially beneficial for businesses that want to have more control over their financial resources and are able to manage their risks effectively. By saving money or allocating a specific budget for potential losses, they can avoid paying premiums for insurance that they may not need, thus potentially saving money in the long run.

The other options reflect different approaches to managing risk. Transferring all risks to an insurance company indicates a complete reliance on insurance, which contrasts with the self-insurance concept. Purchasing coverage from multiple insurers suggests a diversification strategy in insurance, which is not aligned with self-insurance principles. Lastly, seeking government assistance implies looking for external support in times of loss, which does not relate to the self-funded nature of self-insurance.