Also relevant. If you are a doctor then the costs of your “defensive medicine” fall on the hospital/insurance companies (here in the UK the NHS). While the costs of being sued fall a lot more on you personally, even if the actual fine/monetary costs are paid by your organisation you still get a kick to the reputation, plus costs in stress and time. Spending $9 of someone else’s money to save yourself $1 is rational in a self-serving way.
Also relevant. If you are a doctor then the costs of your “defensive medicine” fall on the hospital/insurance companies (here in the UK the NHS). While the costs of being sued fall a lot more on you personally, even if the actual fine/monetary costs are paid by your organisation you still get a kick to the reputation, plus costs in stress and time. Spending $9 of someone else’s money to save yourself $1 is rational in a self-serving way.