Optimal insurance contracts revolutionize coverage for random audits!
The article discusses how to create the best insurance policy when audits are random. For people who are very cautious about risks, the best policy includes paying a certain amount if damages are above a certain level. If the claim is verified, all damages are covered. If not, there is an extra payment that goes away for very large damages. For people who are less cautious, it might be best to pay a small amount for small claims with a changing coverage plan.