# Self-Insurance

*Insurance — Finicade finance glossary*

Self-insurance is deliberately keeping a risk rather than transferring it, funding losses from your own reserves. Every deductible is partial self-insurance, and large employers self-fund health plans on the same logic. The decision rule is capacity and frequency: retain risks that are small relative to your balance sheet or frequent enough to be predictable, transfer the ones that are neither.

**Also known as:** self-insured, retained risk

**Related terms:** [Deductible](https://finicade.com/glossary/deductible), [Emergency Fund](https://finicade.com/glossary/emergency-fund), [Insurance](https://finicade.com/glossary/insurance), [Captive Insurance](https://finicade.com/glossary/captive-insurance), [Risk Appetite](https://finicade.com/glossary/risk-appetite)

Source: https://finicade.com/glossary/self-insurance