Why require insurance from a small company, particularly when it may be a financial burden on them?
Small entities need insurance more than large entities because the small entity’s ability to pay for damages out of its own pocket is less than that of a larger entity. If an entity doesn’t have insurance and cannot pay a claim, the injured party is likely to look at NSHE for compensation (i.e. sue the NSHE). Additionally, if the damages are to NSHE property, NSHE would have to pay the claim.
