1. Large businesses spend millions of dollars annually on insurance. Why? Should they insure against all risks or does insurance make more sense for some risks than others? Businesses spend substantial money on insurance to protect their assets. The loss of assets costs them money, and the insurance is a hedge against those costs. If they suffer property damage, it will cost money to replace that property, and if the property is necessary to the business's operation, it will cost them in down time, as well. Businesses need to protect against losses to preserve both their assets and their cash flow. An emergency that requires a huge influx of cash to correct can derail a company that might otherwis
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