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Such losses, if coated by conventional insurance, imply having to pay a premium that includes loadings for the corporate's common bills, price of placing the policy on the books, [http://shadowaccord.nwlarpers.org/index.php?title=Ca_Department_Of_Insurance http://shadowaccord.nwlarpers.org/index.php?title=Ca_Department_Of_Insurance] acquisition expenses, [http://sonyashnyk7.com.ua/user/AlphonsoX01/ sonyashnyk7.com.ua] premium taxes, and contingencies. While this is true for all insurance, for small, frequent losses the transaction costs might exceed the benefit of volatility discount that insurance otherwise affords. 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