Which statement describes self-insurance for workers' compensation?

• A. The government pays all premiums
• B. The employer pays part or all of the cost of providing workers' comp insurance to the employees
• C. Employees are required to purchase private insurance
• D. No coverage is provided

Answer: (B)

Self-insurance means the employer funds and administers workers’ compensation benefits directly, rather than buying coverage from a private insurer or state fund. The employer must have sufficient financial resources and regulatory approval to cover claims, so the employer pays all or part of the cost of providing workers' comp to employees. This is why the described option—employer paying part or all of the cost—best matches self-insurance. The other statements describe government-provided coverage, personal private insurance by employees, or no coverage, none of which align with self-insurance.