When I got ready to make this post a memory of the terrific series of Guinness beer TV commercials suddenly popped into my head. So, I backed out of WordPress and did a YouTube search and found one of those commercials to embed in my post. How this video relates to my post should become clear.
My first job with the Federal Government involved exciting things like collecting and depositing Customs duties, taxes and fees, preparing payrolls and paying the bills – Oh! and accounting for those activities.
Each year I processed the payment of a large premium to an insurance company to bond our employees, to guarantee payment for damages in the event of employees covered in the bond causing financial loss to the Government, things such as stealing, theft, forgery, larceny and embezzlement.
But, one day someone compared the amounts paid in premiums to bond employees over the years with the amounts of damages paid. The former was very, very large. The latter was very, very small.
The logical question: Why pay such large premiums for such a small risk?
The result: The Government became a self-insurer! BRILLIANT!