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There's a lot of excellent discussion in the comments on who should ultimately pay. One interesting aspect: if insurance gets too high, it incentivises corpora
by bluelightning2k 3y ago
There's a lot of excellent discussion in the comments on who should ultimately pay.
One interesting aspect: if insurance gets too high, it incentivises corporations themselves to be the insurer. I mean the literal corporate limited liability.
Would they not be incentivised to put each major asset into its own corporation, and in the event of a major loss that corporation becomes bankrupt?
- gruez 3y agoYou know what else has limited liability? People. A burger flipper making $30k/year can cause millions in damage by driving a car and crashing into a family of 4, sending them to hospital. The way we fix this is mandated insurance, so in the event something bad happens the insurance pays rather than having the family trying to collect a multi-million dollar judgement from someone with negative net worth. It's pretty easy to imagine cities/states/countries doing the same thing. If you want to sail into our waters, you need to carry insurance. I'd be surprised if that isn't already the case.
- Horffupolde 3y agoUp to the point where it’s considered criminal negligence by the executives.
- golemotron 3y agoI've never been about to figure out what the word should means.
- c0wb0yc0d3r 3y agoIt sounds like that is already the case. https://youtu.be/2Wim-_Q_59o?t=13m30s https://youtu.be/2Wim-_Q_59o?t=13m30s
- proteal 3y agoI'm not exactly sure how it all plays out, but if a company claims to not be able to pay, the lawyers will "pierce the corporate veil." Essentially they will ask for an ownership diagram and keep working their way up to the ultimate ownership entity. This trick doesn't work for real businesses, and only kinda works for fraudulent ones.