What does self-insured mean in the context of EAN Holdings?

In the context of EAN Holdings, being self-insured means that the company has decided to assume the financial responsibility for liability losses rather than transferring that risk to an external insurance provider. This approach involves setting aside funds to cover potential losses instead of paying premiums for an insurance policy. By choosing to self-insure, EAN Holdings is effectively taking control of its risk management strategy, allowing them to potentially reduce costs associated with traditional insurance premiums while also having the capacity to manage and cover their own claims.

The other choices imply different arrangements; for instance, full insurance coverage from an external provider indicates reliance on third-party insurance, which conflicts with the concept of self-insurance. Similarly, covering only theft and damage suggests limited coverage, not complete responsibility for broader liability losses. Relying solely on customer insurance implies that the company depends on customers to have their own insurance, which does not align with being self-insured as it removes direct financial responsibility from the company itself.