Insurance Attorneys
In the absence of insurance, three possible individuals
bear the burden of an economic loss; the individual suffering the loss;
the individual causing the loss via negligence or unlawful conduct; or
lastly, a particular party who has been allocated the burden by the legislature,
such as employers under Workmens Compensation statutes.
While types of insurance vary widely, their primary goal is to allocate
the risks of a loss from the individual to a great number of people. Each
individual pays a "premium" into a pool, from which losses are paid out.
Regardless of whether the particular individual suffers the loss or not,
the premium is not returnable. Thus, when a building burns down, the loss
is spread to the people contributing to the pool. In general, insurance
companies are the safe keepers of the premiums. Because of its importance
in maintaining economic stability, the government and the courts use a
heavy hand in ensuring these companies are regulated and fair to the consumer.
An Attorney For You is a free consumer service. We are
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