Entities tend strongly to externalise risks unless compelled to do otherwise.

Insurance obligations -- auto, health, life, C&L, bonding, mortgage and title -- are generally required by or offered via third. parties. Sometimes governments, but often creditors, counterparties, employers, or other entities.

There are true externalities in a car accident.

If you have to shut down your business, that's mostly impacting your business in a very direct way.