When three-year expected losses are greater than $100,000, most firms should self-insure workers' compensation.

Question

Quizplus · Accepted Answer

Most firms should not self-insure workers' compensation when three-year expected losses are greater than $100,000 because self-insurance requires significant financial resources and risk management capabilities that not all firms possess. Additionally, self-insurance may not be cost-effective or feasible for many firms, especially if they face high expected losses.

When Three-Year Expected Losses Are Greater Than $100,000, Most Firms