Complete Retention
Categories: Insurance, Company Management
Complete retention refers to the notion of bootstrapped self-insurance. That is, the company completely retains all of the risk itself, saving on insurance premiums they would otherwise have to pay to the kindly, loving people at Geico.
Should the company suffer the flood, the fire, the quake...then it will simply absorb the loss, rather than turn the claim in to their insurance company (transferring the risk to a third party). No outside capital is sought.