Many companies will probably do just that. The recent wave of price increases "will cause many small and midsize companies to reassess risk, and in some cases, get rid of coverage," predicts Schaetzle. The strategy has its perils, however. In lowering the fixed costs represented by insurance premiums, a company picks up the risk of expense spikes if it gets hit with a big lawsuit down the road. "After a rigorous assessment," says Schaetzle, "you've hopefully guessed the right way on, say, buying less expensive coverage with higher deductibles."
Hopefully.
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