self insurance
/ˌsɛlfɪnˈʃʊrəns/
noun
- The practice of setting aside your own money to cover possible future losses, instead of buying insurance from a company.
- The company chose self-insurance for its fleet of vehicles to save on premiums.
- By building a large emergency fund, she practiced self-insurance against unexpected medical bills.
- Self-insurance works well for small risks but can be dangerous for major disasters.