Earlier quoted context omitted.
My understanding is that the insurers like these situations - it makes it obvious how important good insurance is and sales go up. The individual impact seems large to the layperson but is within the models of the insurance and reinsurance companies over time.
Is it? The best "insurance" against this seems to be a rat's nest of sufficiently small LLCs which then conveniently go bankrupt when something big happens (losing only the assets in that LLC at that time). Imagine a shipping company where each ship is its own LLC. If the ship sinks, well too bad, the only meaningful asset that LLC had was the ship, oops. I assume ships are required by law to have insurance before be…
That's why insurance is heavily regulated and there are requirements on capital available for claims in order to operate in the jurisdiction. And of course savvy clients (like the ones managing $100MM container ships) will do due diligence on this as well.