Am I Big Enough To Self-Insure? Written by Mark Kraemer on 4/4/2016 3:14 AM in Workers Compensation Injury Management, employee management tips. It has 0 Comments. Workman's comp insurance is well suited for self-insurance, though this may not be the right move for every organization. Careful consideration must be given to determine whether self-insurance is a good fit for you. Decisions should not be made by a single individual, risk manager or owner. A host of factors must be considered, without which, the chances of success are minute… Financial condition. Does your organization have the financial resources to fund startup costs as well as upkeep and future claims? A strong cash flow and substantial cash reserves are essential to handle the large fluctuations associated with self-insurance. Checking your state’s minimum net worth requirements for self-insurance first may prevent wasted energy. Management commitment. Are managers prepared to handle the long-term commitment necessary, trading known risk for unknown risk? Are managers willing/prepared to be proactive and hands-on in claim prevention? Will the decision be amicable to customers, business partners, and stockholders? Cost and availability of internal and external support systems. What can your organization handle in-house? Responsibilities that must be outsourced to the expert or informed can quickly add up to big money. Can you identify and economically utilize internal resources for these services? Pricing negotiations with medical service providers Cost projections for current – and future - claims Medical and legal claims evaluation and processing Development and implementation of safety and loss control programs Characteristics of exposure. The state(s) in which you operate can play a key role in your decision. State requirements vary, and multi-state organizations can incur significant administrative costs. Exploring alternatives to workman's comp insurance? There’s more than one way to save. Consult the experts at Minnesota Comp Advisor today.