&gt;I don&#x27;t understand what caps or punitive damages have to do with it. Most venues don&#x27;t have caps at all, and only rarely does an insurer get stuck paying for punitive damages.<p>Yeah, that&#x27;s the problem; it means you can&#x27;t insure away the problem, and each jury gets told to slap on a high enough penalty to ensure the SDC maker &quot;never does it again&quot;, and you know how that goes.<p>The problem isn&#x27;t the insurer&#x27;s solvency, but the SDC maker&#x27;s.<p>One venue that has caps, for similar reasons, is vaccines.  Because vaccines are safe and necessary, we need a way to ensure vaccine makers exist and aren&#x27;t sued to bankruptcy over the inevitable few deaths, so there&#x27;s a special system for ensuring compensation of the victims, and makers can accurately set aside a known quantify of money for those deaths.