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New York State employers are required to provide workers' compensation, disability, and Paid Family Leave benefit coverage to their employees. Selfinsured health insurance means that the employer is using their own money to cover their employees' claims.Self-insurance is also called a self-funded plan. This is a type of plan in which an employer takes on most or all of the cost of benefit claims. Most large employers are selfinsured, 6 meaning that employers bear financial risk for their health plans. Self-Insured Employers. First Report of Injury. Overview of Self-Insurance. A Self Funded, or Self-Insured plan, is one in which the employer assumes the financial risk for providing health care benefits to its employees. To be self-insured, employers must have enough capital to cover the expenses associated with self-insurance (i.e.