His insurance company during the time of the incident leading to the claim was Pacific Star and Marine. The policy was written by Urbine Balloon Agency. At the time the claim was made Pacific Star and Marine had filed for bankruptcy. The balloonist was on his own for his legal defense and any judgement which might arise from the case. He was able to settle the claim for several thousand dollars, paid from his own pocket.
Insurance is, by definition, a protective measure.
By buying a policy the purchaser has coverage against loss, but only up to the limitations of the policy. In its simplest form insurance pools money of many individuals to pay claims against its policyholders. In this way insurance spreads the risk of one person over many. The insurance company usually takes one or more actions to secure its own financial strength. One of the methods is to buy reinsurance.