Question 1 Do you agree that the type of customer to whom the Amigo Company sells should influence Thieme’s decision regarding insurance?

While it shouldn’t be the sole drive of the decision for Alden Thieme, it is definitely one in which consideration should be placed. Talking to a lawyer though would help clear up the situation and provide understanding.

Question 2 In what way, if any, should the outcome of the current litigation affect Thieme’s decision about renewing the company’s insurance coverage?

Dropping all coverage is just asking for punishment. To drop it defies logic considering they are somewhat involved in a litigation event. I would think the outcome of the litigation would cause him to want to keep insurance.

Question 3 What options does Amigo have if it drops all insurance coverage? What is your recommendation?

If Amigo drops all of the insurance coverage it carries, then it is open to pure risk. Any damages brought against the company will have to be paid by the company. This is generally not cheap and could cause the company to have liquidate property and assets to cover it.