Thank you for sharing!

Your article was successfully shared with the contacts you provided.

For decades, the insurance industry has had an image problem. Many see insurance as a way for insurers to simply rip people off by collecting premiums but not paying out for claims. Insurers are seen as having deep pockets that should pay for everything, isn’t that what it’s for? But herein lies the problem. There are many factors in insurance that consumers don’t understand or take into consideration.

First, insurance is not a social service. It is a for-profit industry providing a particular service to those who buy a policy. The policy is designed to provide coverage for certain losses that can be predicted and rated for. The collapse of the Surfside condominium highlights this; the building collapsed, and many figure that’s what insurance is for. But in order to develop a premium for any type of loss, there has to be enough of those losses for carriers to look at the costs of those losses, make predictions on the possible number of future losses and predicted costs of those losses, so premiums can be developed that will actually allow the carriers to accumulate enough funds to provide coverage when that event does happen.

This premium content is locked for
FC&S Expert Coverage Interpretation subscribers.

Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.

  • Quality content from industry experts with over 60 years insurance experience, combined
  • Customizable alerts of changes in relevant policies and trends
  • Search and navigate Q&As to find answers to your specific questions
  • Filter by article, discussion, analysis and more to find the exact information you’re looking for
  • Continually updated to bring you the latest reports, trending topics, and coverage analysis

Already have an account?
For enterprise-wide or corporate access, please contact our Sales Department at 1-800-543-0874 or email [email protected].

FC&S Editors


Get Answers Directly From the FC&S Experts

Submit your coverage interpretation question to the editors of FC&S for quick and reliable information.

Question of the Week

Insurance Coverage Q&A: A Retaining Wall and Water Accumulation ›

Water behind a retaining wall causes it to collapse. Could the failure of drains to remove the water make this a water backup situation?

Question of the Week Archive ›

Copyright © 2023 ALM Global, LLC. All Rights Reserved.