Individual self-insured employers must qualify in each state for which they have exposures. Alternatively, they may purchase a primary insurance policy in those states where they fail to meet the minimum requirements to self-insure. Individual self-insured employers may manage their programs through utilization of their risk management, human resource, or finance departments. Customarily, they also contract with independent vendors who provide services such as claims administration and loss prevention. Today, most states have legislation allowing individual self-insurance. There are more than seven thousand individual self-insureds across the country.
