In the absence of insurance, three possible individuals bear the burden of an economic loss; the individual suffering the loss; the individual causing the loss via negligence or unlawful conduct; or lastly, a particular party who has been allocated the burden by the legislature, such as employers under Workmen's Compensation statutes.

While types of insurance vary widely, their primary goal is to allocate the risks of a loss from the individual to a great number of people.  Each individual pays a "premium" into a pool, from which losses are paid out.  Regardless of whether the particular individual suffers the loss or not the premium is not returnable.  Thus, when a building burns down, the loss is spread to the people contributing to the pool.

In general, insurance companies are the safe keepers of the premiums.  Because of its importance in maintaining economic stability, the government and the courts use a heavy hand in ensuring these companies are regulated and fair to the consumer.

Contact Mark A. Davis at (419) 297-5088 to schedule a confidential consultation regarding your Insurance Dispute legal issues.