Same with eg. electrical codes. Don't specify exactly how things must be wired. Instead just have a massive fine for the electrician when someones house burn

Same with eg. electrical codes. Don't specify exactly how things must be wired. Instead just have a massive fine for the electrician when someones house burns down, and require them to take insurance to pay said fine. The insurers will then take care of making sure the people they insure are doing a decent job, and insurers will research ways to make things safer to reduce their exposure and as a competitive advantage. Said fines/insurance don't act as a drag on the economy, because they effectively are a tax on doing dangerous stuff, and other taxes can be reduced in tandem.