Quote:
Originally Posted by Aquarian Sports Cards
I believe in the stockholder statement that revealed the $800k reserves they indicated they have no insurance for guarantee returns. Why would you have a contingency fund if you carried insurance?
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Because anninsurname policy usually also has a deductible that the insured needs to meet first.
I am the treasurer of a national non-profit company that has some potential liability concerns. We carry liability insurance but not from the first dollar. Therefore we also have a reserve that can be used to cover any deductible claims expenses that might arise.
I don’t know of any well managed, publicly traded company that doesn’t carry sufficient insurance coverages to protect themselves. It would be a big surprise if a company like PSA was trying to self-insure something like this .