SELF insurance should be considered by more businesses and would act as "the best incentive to maximise safety" in the workplace.

Adelaide lawyer John Walsh, managing partner of DonaldsonWalsh Lawyers, said self insurance benefited employers and employees and that alternatives to WorkCover were desirable.

"Self insurance in workers compensation terms describes employers that fund and manage their own claims," he said in a paper.

"Self insurance is difficult to obtain, with significant financial criteria. There are minimum financial requirements for self insurance and there is a need for financial guarantees, excess of loss insurance and very strict requirements around injury management resources and standards and Occupational Health and Safety resources and standards."

He said there were several benefits from adopting self insurance. These included the potential for significant financial savings, better control over claims and increased awareness of OH&S.

Furthermore, few self insurers elected to return to the WorkCover scheme. As at June 30, WorkCover reported a profit of $30.2 million and an unfunded liability of $952 million.

He said arguments that increased self insurance status would negatively impact WorkCover were unwarranted and were backed up by two independent reports.

Early intervention was considered the key to resolving workplace injury and he said many self-insurers had on-site OH&S staff and/or nurses who could provide immediate treatment.

"Perhaps it is time to think outside the square, encourage self insurance and diminish the role of WorkCover and allow the introduction of private insurers," Mr Walsh said.

http://www.adelaidenow.com.au/business/self-insurance-good-for-workforce/story-e6frede3-1226201577331