The article explores how tort liability in modern law acts like insurance to compensate injured parties. It examines how changes in tort law over the past 50 years have affected this insurance function. Despite some limitations, tort liability generally plays a valuable role in providing compensation and incentivizing safety. Judge Calabresi's idea that tort law spreads risks like insurance has influenced legal and economic thinking. He argued that torts ensure the real cost of goods is reflected in prices, unlike the Coase theorem which focused on private deals. Overall, tort law’s insurance role is essential for fair compensation and safety incentives in society.