WNYShooter wrote:
Actually, the settlement won't cost them anywhere near that in total. Their insurance will cover a good chunk of it, and they can write the rest of it off, along with the insurance costs, on their taxes as business expense.
The insurance payout is effectively more of a “loan” —- their rates will rise as the insurance company is allowed to recover payouts via future rate increases. Their ability to write it all will depend on the details of the settlement, it may or may not be deductible at all.