Question

Can insurance be purchased to cover all kinds of liability?

Answer.

In theory, insurance can be purchased to cover all perils which can lawfully be insured. This limitation is another way of saying that the contract of insurance must be for a valid purpose (and not for an illegal purpose like transporting street drugs). In practice, though, the cost of buying some kinds of insurance - the premiums - is so high that it is beyond the means of the organization wanting to be insured.


 

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