For Consumers

What you need to know about self-insured business claims

Some large businesses may choose to self-insure to save money and control costs for their commercial property, auto and general liability coverages. When a business chooses this route, they don’t buy a plan from an insurance company. Instead they set aside money and use it to pay for their general liability, commercial auto and property damage claims.

Businesses that provide their own coverage directly from their own funds typically insure for:

  • Commercial vehicle fleet coverage for their vehicles while on the road or while on a job site.
  • General liability coverage to cover their non-vehicle operations, such as construction and equipment-installation work.
  • Property coverage for retail sales locations like sporting goods or grocery store chains.

When someone files a claim, the business pays the claim out of its own funds. They may use their own employees (risk management staff) to process and monitor claims, or they might hire a third-party administrator (TPA) to process insurance claims for them. Insurance companies often act as TPAs.

If you need to file a claim for auto or home

If you suffer damage and need to file a claim, it’s important to know if you’re dealing with a self-insured business. This way you'll know where to get help to resolve your complaint or issue. Self-insured plans are not subject to Washington state insurance laws. This means if you have an issue, we can’t help you resolve it.

To settle a claim, you may be successful if you directly communicate with the self-insured business, or you might need to contact an attorney for advice. If you still can’t settle your claim, you may need to let the courts review the matter and make a settlement decision.

If you’re still not sure and have questions about the process, give us a call at 800-562-6900.