Self-Insurer [Labor] Law and Legal Definition
Self-insurer means an employer who elects to pay directly the compensation provided for, instead of insuring liability as provided under a statute. The employer should furnish to the board satisfactory proof of the employer's financial ability to make the direct payments. Alaska Stat. § 23.30.395 is an example of a provision related to self-insurer.
By doing so a self-insurer lowers ongoing premium expenditures and takes control of low-level risks within the organization. The business creates a fund of money and manages the fund and any claims asserted.