Insurance is one of the few industries that have remained largely unchanged over the past few decades at a low level: You suffer losses as a direct result of something going south, and you get paid by your insurer.
But that old model doesn’t always work. For example, a construction company in a region regularly affected by hurricanes might see its projects surviving these storms mostly unscathed, but it might still see losses in terms of time and other potential costs because crews simply couldn’t make it to work.
Your traditional indemnity policy might pay this company based on the magnitude of its losses but wouldn’t have to pay for those unforeseen, follow-on costs b …
