Reardon Anderson - July 2022

THINKING ABOUT SELF- INSURING YOUR BUSINESS? THE ADVANTAGES AND DISADVANTAGES

Every business needs some type of insurance. If your business is low risk and doesn’t have many claims, self-insuring could be the way to go. But there are some advantages and disadvantages to this. Is self- insurance the right fit for your business? Let’s find out. SELF-INSURANCE: DEFINITION When you self-insure, you will take on all of the financial risks of insurance policies. You will pay out-of-pocket for any claims or repairs. The Businesses Credentialing Services stated that businesses use this method to save money because the cost of premiums to an outside vendor can add up — providers calculate premiums based on forecasted risks, and the added fees can be costly. THE PROS One of the most significant advantages of self-insurance is that you protect your business from increasing premiums and only pay for what is necessary. You will also be more aware of your risks because you must analyze past risks to save enough money for future risks.

manage risks in the long term by saving money for years until you have to use it.

THE CONS The biggest disadvantage you could face is not understanding risk exposure. If you’re unprepared and don’t save enough money, you may not be able to cover the amount for accidents and repairs. You must be prepared for anything that comes your way. When you’re self-insured, you use a third-party administrator (TPA) to manage and process claims. It’s not as simple as placing money into a separate account. You need to have a team to analyze risks, manage the funds and records, and handle claims. You also have to take into account the cost of having a TPA. If you’re considering self-insuring, you must be aware of the regulations within your jurisdiction because if you fail to comply with the requirements, the penalties are costly. If you have any questions about self-insuring your business, allow Reardon Anderson to assist you. We will be happy to look at your business, your requirements, and see if self-insuring is the way to go.

Most policies expire within a year with traditional insurance, and you need to renew your policy. But with self-insurance, you can

MOUTHWATERING SOUTHERN BBQ

Summer isn’t complete without some Southern BBQ!

INGREDIENTS

3 lbs boneless pork loin roast, trimmed

18 oz barbecue sauce

2 tbsp Worcestershire sauce

1 cup water

1 tbsp hot pepper sauce

1/2 tsp salt

10 hamburger buns, split

1 tbsp pepper

Deli coleslaw (optional)

1/4 cup brown sugar

DIRECTIONS

1. In a 4-quart slow cooker, add the roast and 1 cup of water.

2. Cover and cook the roast on high for 7 hours or until tender.

3. Once tender, shred the meat.

4. Return the shredded meat to the slow cooker. Stir in salt, pepper, brown sugar, barbecue sauce, Worcestershire, and hot pepper sauce.

5. Cover and cook on the lowest setting for an hour.

6. When finished, serve barbecue on buns with coleslaw (optional).

Inspired by JustAPinch.com

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