[toogan]

Typically when you have damages and are insured, then the insurance pays you and then goes after the original claim to get their money back. That is, the party that had the original damage leaves the claim to the insurance which then deals with getting the money back from the perpetrator while the original victim already got their money from the insurance.

This also moves the risk of the perpetrator not being able to pay the damage. Now the victim does not carry that risk anymore. The insurance does. Which is their value proposition.