self-insure

self-insure definition - business

self-insure

To assume the risk of a loss by setting aside money in a reserve fund rather than paying premiums to transfer the risk to an insurance company. For example, the owner of an older vehicle may decide to self-insure against potential damage to the vehicle that would normally be covered by collision or comprehensive insurance.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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