Planning Tool

Self-insurance calculator — fund growth vs. loss exposure

Model whether a self-insurance fund can outgrow the property's exposure across all three loss tiers (total, major partial, minor) over a chosen horizon, and compare the cumulative cost against rising insurance premiums.

Property & peril

Property value ($)

Peril type

Annual premium (if insured)

Premium trend (%/yr)

Deductible (if insured)

Loss probability — all three tiers

Total loss frequency (1-in-N yrs)

Major partial (1-in-N yrs)

Minor loss (1-in-N yrs)

Major partial loss (% of value)

Minor loss amount ($)

Self-insurance fund

Initial fund ($) $75,000

Annual contribution ($) $14,400

Investment return (%/yr) 7%

Projection horizon (years) 15 yr

Results

Loss probability over horizon

Scenario	Annual prob.	If it occurs	Exp. annual cost	Severity

Yr	Fund	Premium	MPL cover	Gap	Adj. exp. loss	Net self-insure

Illustrative only, not insurance or financial advice. Probabilities use a Poisson model (1−(1−p)^N). Fund projections assume consistent contributions and returns. Consult a licensed insurance professional and financial advisor.

Self-insurance calculator — fund growth vs. loss exposure

Unified self-insurance calculator combining fund growth, loss probability by severity, and scenario-adjusted projections