Is this statement accurate? Why or why not?

Externalities refer to a cost or benefit that is caused by a financial motive. These can be both positive and negative. A negative externality is the indirect cost by one onto another. A positive externality is when a benefit is received as a result of actions taken by another. These can stem from both production or consumption of goods or services. breaking it down a little more is an externality is an even that happens due to another event. An example would be pollution caused by commuting to work, or a chemical spill caused by improperly stored waste. These can be corrected with financial and/or social measures.

I believe this statement to be false. My reasoning is that being pre-active rather than post-active with specific listed measures, will reduce the amount of externalities in the future. For example, if all families/home owners were required to carry pet insurance on all animals and not just a choice when wanted, this could prevent home owners (externalities) from having to pay more out of pocket if something serious is tohappen in the aftermath.