[octodog]

It's no different to choosing your level of cover on life insurance or your level of excess on car insurance. Different companies and circumstances will have different risk profiles and will therefore require different levels of insurance.

[delecti]

I'm not sure any of those are the same though. Everyone dies exactly once, and you can plausibly never need to invoke your car insurance, but a business shipping large amounts of good will surely incur some stochastic but average-able level of loss.