Insurance is about covering the risks of the unexpected.
It’s actually about covering the risk of the expected
If you had a device that could explode and blow up a finger OR a hemisphere and there is no way of knowing what will happen, you cannot get it insured
Companies insure their products because they KNOW some of their products will be defective and may cause harm… they just cannot avoid the defects 100% of the time
Specifically in management terms its about the “known unknowns” - things that you know might happen but don’t specifically know the when, how, how bad and if it will actually happen or not.
The main point I was making regarding the previous post is that insurance doesn’t cover the “known knowns”.
It’s actually about covering the risk of the expected
If you had a device that could explode and blow up a finger OR a hemisphere and there is no way of knowing what will happen, you cannot get it insured
Companies insure their products because they KNOW some of their products will be defective and may cause harm… they just cannot avoid the defects 100% of the time
Specifically in management terms its about the “known unknowns” - things that you know might happen but don’t specifically know the when, how, how bad and if it will actually happen or not.
The main point I was making regarding the previous post is that insurance doesn’t cover the “known knowns”.
good clarification