Insurance often covers damages awards in the united states and the premiums can be adjusted to reflect increased amounts of awards. But insurance premiums can also go up simply to increase the profits of the insurance companies. such increases may also be passed on to consumers. if damages awards have been curtailed, businesses and consumers would be paying higher prices without any tradeoff. If insurance premiums were lowered to reflect lower damages awards. This would seem very unlikely particularly in the long run. It is not likely that a business would be willing to take higher risks with dangerous products. The reputation of the business could be at stake and its profits could easily disappear as if they were paid to insurance companies as premiums. If tort liability is a businessman's primary concern, then locations in which awards are fewer in number and lower in amount be appropriate places in which to choose to do business.