There is a myth that all of corporate America will do anything to make a profit including resort to the tactics like those associated with the recent Hewlitt Packard mess, that corporations are greedy and evil. We know that most corporations are responsible citizens who would do nothing to hurt people.
We also know of crazy lawsuits with huge settlements that make things tough for business. That's why fast food restaurants need to warn that the coffee is hot. That's why ice skating rinks need to warn us that ice is slippery. That's why doctors can't afford malpractice insurance.
But really we don't know anything.
Click on the title of this entry to check out the Drum Major Policy Web site Tort Deform to learn more. It's a surprising read.
The fact is that insurance companies are behind the much of the call for tort reform not because they're losing so much money in lawsuits, but because they can maximize profits by limiting liabilities and increasing premiums.
Look no further than the Gulf Coast. The feds will compensate homeowners and renters who carried insurance only. If a family didn't have insurance on their house, they get nothing. Meanwhile the insurance companies are paying a pittance of what their policy holders paid for in premiums.
Corporate America doesn't mind being wrong, they just don't want to pay for it.
No comments:
Post a Comment