“Risks that could have major consequences but are relatively unlikely to happen are often insurable. Insurance is the practice of spreading the cost of an improbable loss across a group, so that no single individual bears the entire cost of a disaster. Everybody pays a premium to the insurance company, and the insurance company pays claim benefits when one of its customers experiences an insured loss.”
— The Startup Entrepreneur’s Guide To Risk Management
June 24, 2009, 11:12pm
