Managing Risk – How Insurance Became a Key Solution
The common purpose of all insurance is to restore losses and develop greater standards to limit future losses in every industry worldwide. Before insurance, there was a lack of reliable transportation or professional services that caused more severe accidents, injuries, and deaths. Without insurance, families had no financial ability to recover from their losses. An accidental injury could cause an entire family to lose all their resources.
Nobody wishes to pay the cost of insurance premiums until they experience an accident that causes injury or a loss of property. The key is to balance the overall risk with the ability to recover after an unforeseen accident or loss. In the medical industry since the late 1800s, medical malpractice insurance has helped advance quality standards of care for patients and protect a medical practitioner when an unfortunate medical error causes injury and hardship for the family.
Early Insurance History
In the 1300s, merchants and traders in Babylonia pooled their risk to prevent major losses of cargo to thieves and pirates. Chinese merchants also pooled their risk when moving cargo down rapid rivers during this time. The Amish historically pool their effort to help restore a neighbor’s barn after it is destroyed by fire.
In the 1600s: Lloyds of London began in a coffee house in 1688, by meeting with investors to protect ships & cargo.
In the 1700s: Ben Franklin established the first fire insurance company in America in 1752 to protect homes and businesses.
In the 1800s: Began the more modern casualty insurance that protected railroad passengers after accidents. The Travelers Insurance Company wrote its first railroad casualty policy in 1864.
Insurance Became Key to Progress
In order to reduce accidents and their severity, insurers developed quality and safety standards for entire industries to follow. This helped to reduce premium costs and make insurance more affordable to many. Medical practitioners now follow standards of care that reduce their risk of medical error that can cause economic damage to both the patient and physician. This also helps to restore trust between the patient and the medical industry.
“Patients do not care how much you know until they know how much you care.” Sir William Osler, M.D.
Aviso Insurance is an independent agency that works for YOU, the medical expert. We have access to nearly all the medical malpractice insurance markets to serve you.
“At Aviso Insurance, we are proud to serve the many heroic professionals in our healthcare community.”
Dan Reale, Independent Agent/Owner – Office: (407) 808-6149 – E-Mail: [email protected]