Long-Tail Liability

  

Categories: Marketing, Accounting

Until about 1980, lots of buildings were made using material that contained asbestos. Many years later, we know that was, uh...probably not the best idea.

Exposure to asbestos causes cancer. Big oof.

Unfortunately, a lot of folks didn’t start developing symptoms until years after their exposure, which made it hard to pinpoint the exact time and place they got sick. In fact, companies are still shelling out big bucks to settle asbestos-related claims today—just turn on any TV channel in the middle of a weekday and we guarantee there’ll be at least one law firm commercial urging asbestos-exposed folks to call in and get their share.

When there is a prolonged amount of time between an incident and its ill effects, as we’ve seen with asbestos exposure, it’s known as a “long-tail liability.” Long-tail liabilities can get really expensive for organizations and their insurance companies. Case in point: all those companies paying for asbestos-related medical costs forty-some-odd years later.

Of course, something doesn’t have to take years to rear its ugly head to qualify as a long-tail liability. If we’re in a car accident and think we’re fine, but then five days later we can’t move our neck, that can also be considered a long-tail liability. There’s actually no set-in-stone timeframe for what qualifies as long-tail and what qualifies as short-tail; it differs by insurance type (i.e., personal liability claims tend to have a longer long tail than property claims) as well as a number of other factors.

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sure we've all heard of mystery stories, but what really makes a mystery

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a mystery? okay yeah if you're reading something called the big book of [boy picks book off shelf]

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mysteries, that's a pretty good hint. but we're looking for something a bit more

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general than that. like most stories a mystery will contain stuff like

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characters a setting and a plot, but there are a whole bunch of other

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ingredients that give mysteries that are distinctive and dare we say mysterious, [chef mixes ingredients]

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taste. and no none of those ingredients are the mystery machines. well the first

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one is a central problem aka a mystery to be solved like a crime. it's pretty

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tough to solve a mystery if there's you know no mystery to solve. well you could

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have a story where a detective goes to the beach with his friends and has a [2 men toss beach ball]

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great time but with no problem well you've got no mystery. and sure the

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detective might appreciate the day off but mystery stories aren't about

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creating fond memories for fictional detectives. well the second element is a

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list of suspects. if there's a crime to be solved then somebody must have [lineup shown]

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committed that crime. and if there's only one suspect it's gonna be a pretty short

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story, and not much of a mystery. so if you're bad at solving mysteries, well it

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might be right up your alley. well the third element is a set of clues.

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in a good mystery both the characters and the reader use clues to figure out [detective examines house]

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who committed the central crime, and know the answer is rarely Miss Scarlet with

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the candlestick in the billiard parlor. the fourth element is a bunch of red

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herrings. and no red herring isn't an alternate name for swedish fish. [red candy fish]

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we like that. in mysteries red herrings are false clues. things that suggest the

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guilt of a suspect who's really innocent. even though readers like to try and

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solve mysteries they don't want the solution to be too easy. it's like the

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difference between playing chess with your grandpa and playing chess with a

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toddler. yeah the win against the toddler well [man plays with old man, and young child]

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it's gonna be way more satisfying than the win against your grandpa. what? she's

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a prodigy. grandpa's just senile and last but not least a mystery story must

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contain a dénouement. well this is the resolution which comes at the end of the

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story. it reveals the suspect who committed the central crime and it [detective points out perp from lineup]

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solves the mystery. and if you ever had a hard time coming up with a decent ending

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to your mystery keep this in mind. Edgar Allan Poe once ended a story by

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basically saying the orangutan did it .so when in doubt you know blame the [student grimaces]

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orangutan.

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