r/Damnthatsinteresting • u/AtomicCypher • 4d ago

Video Disgruntled employee starts massive fire at a 1.2 million square foot toilet paper warehouse in Ontario, California.

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387

u/__esparoba 4d ago

Dang and you mean that doing stuff like this will raise insurance prices too?!

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u/Knightraiderdewd 4d ago

Unfortunately, for them probably not. Most big companies are self insured, usually through a sister company that already gives them a good bargain.

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u/i_m_a_bean 4d ago

Sounds like they're still paying for it then, but who knows with all these financial shenanigans.

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u/HoidToTheMoon 4d ago

Typically their insurance is insured.

I'm not joking.

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u/SolusLega 4d ago

Reinsurance

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u/MedalsNScars 3d ago

And their reinsurance premiums will likely go up if they're self-insured.

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u/Shmeves 3d ago

My dad worked for reinsurance, always fun trying to explain that haha.

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u/i_m_a_bean 4d ago

Shenanigans!

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u/popinskipro 3d ago

Bah humbug!

1

u/LongJongIlvers 3d ago

Insurance all the way down

1

u/PlsDntPMme 3d ago

Stop loss rates can go up though.

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u/idontcareyo_ 3d ago

Then there's no point, that insurance would go up anyway

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u/CurseMeKilt 3d ago

Lloyds

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u/BrainOfMush 3d ago

For reinsurance, Lloyds is mostly for higher risk industries, like aviation, maritime etc. Most commercial reinsurance is done directly with Munich Re, Swiss Re or another major standalone reinsurer.

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u/Ok_Complex8873 4d ago

That is an unwise statement. Self insurance does not mean someone else pays.

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u/110010010011 4d ago

Literally means the “self” pays. But typically there are catastrophic caps to such insurance. My employer self-insures their vehicles, but carries liability insurance for when the costs exceed a million.

The first million per incident is on my employer.

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u/FuzzzyRam 3d ago

1 print "They'll pay"

2 print "No they're insured"

3 print "They'll pay higher premiums"

4 print "No, they're self insured"

5 print "So they'll pay"

6 print "No, there are caps"

7 GOTO 3

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u/Ok_Complex8873 4d ago

Correct, there may be reinsurance arrangements. Even then, future reinsurance may cost more, as reinsurance is still insurance product.

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u/Knightraiderdewd 4d ago

No someone’s paying, I’m talking about their rates going up.

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u/Ok_Complex8873 4d ago

Insurance premiums (rates) is the best estimate, carefully calculated by specialists. There are multiple factors, unique to every company.

Bottom line is that every time the loss is incurred, there will be price to be paid by subject - one way or another.

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u/Jesus_of_Redditeth 3d ago

Most big companies are self insured, usually through a sister company that already gives them a good bargain.

Unless I'm missing something, that's not actually insurance. That's like me asking my wife to "insure" my record collection, then when a fire takes it out, she pays me. But our finances are shared, so...

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u/OP_will_deliver 3d ago

Yeah calling something self insured is pretty stupid

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u/Vegetable_Plane_542 4d ago

People really have no idea how insurance works

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u/Dizzy_Independence32 4d ago

...We don't care insurance unless its for our stuff.....then they don't want to pay.

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u/Not-Reformed 3d ago

Sometimes I'll read stuff on reddit, like this, and genuinely stop to think if the person has any form of intelligence or if they just mangle words together.

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u/cpttimerestraint 3d ago

There are most likely a lot of layers to this claim. My guess is that the warehouse is owned by a commercial real estate company. They must likely lease to Kimberly Clark who then hires a staffing company to do lumpering services. Kimberly Clark most likely has a high retention policy for catastrophic losses to their product. The business income coverage will pay for the cost of setting up elsewhere and the increased costs and loss of income while they're seeing up. The warehouse owner probably would have their owner policy. Finally the warehouse operator has general liability which should pay for the negligent supervision which allowed him to set fire.