What are the pros and cons of being "self-insured" and what exactly does this mean for company drivers?
The biggest benefit for the company is that THEY can establish the hiring requirements for new drivers. They are not "held hostage" by the insurance companies requirements. This is what most of the large "training" companies(and I used that term very loosely) do so that they can hire the newbies with no experience. As for any pros and cons for a company driver; I can't think of any that would affect you directly, however my previous point would affect an experienced driver indirectly.
Like you said, it allows the company to accept drivers that insurers won't touch. If there is an accident, though, the insurance company keeps the claim in check, self insureds often get hooked by the other side trying to keep things out of court, how do you get an adjuster to look at something when you are self insured? It probably works out OK though because some people will take a smaller settlement just to get cash. Most smaller self insureds simply have a very high deductible insurance policy; they do carry catastrophic liability coverage.
How does a company get to be self insured? Do they simply need a big pot of money available at any time or is there more to it?
When they file authority documentation and proof of liability insurance, they will be required to provide a bond to stand for minimum liability amounts required for their operation.
A company I'm familiar with is self-insured to 250,000. They carry insurance papers if needed but settle everything in house. They do demand a year of experience on paper but hire based on ability to drive, they recently hired a disgruntled Schneider driver with 4 months experience On the other hand, they require outside carriers to carry insurance on trailers on trailer and cargo, if pulling one of theirs and cargo if pulling their own(refrigerated and bull racks). This is in addition to normal liability. I wouldn't want to pull much for them if I were an O/O.
Mack some times the company will put their buildings and other equipment on the line if they don't want to hold a large cash sum in reserve. I'm not sure how it would work but a bank could put a lien on the property in return for a statement of guaranty for insurance purposes.
Can a self insured company charge premiums to its owner ops?? All self insured companies I've heard of don't charge their owner ops premiums.
Can I self insure my self due to not having any experience and only being 22? Or would it cost to much ? I’m currently looking into financing a used dump truck here in Florida to start my own trucking company but I have no cdl experience and need insurance. I’ve tried progressive and it would be about 25-27k a year and about 8k down.