Companies operate without any responsibility: False

Hazardous businesses can operate in Prospera without any liability

Prospera's corporate responsibility model does not rely on a central authority to approve or prohibit: it relies on the insurance system, which has stronger structural incentives than bureaucratic regulation to exclude genuinely dangerous activities.

The framework for regulated industries requires full insurance coverage for all companies in sectors with potential for damage.

Insurers only underwrite policies for activities where they can assess and limit the risk. A company operating in hazardous conditions or outside recognized professional standards will not find an insurer willing to cover it.

The logic is the reverse of conventional regulation: instead of seeking permission from a regulator who can get it wrong, the company must obtain coverage from an insurer who is financially liable if it gets it wrong.

This system creates stronger incentives for corporate responsibility than mere administrative authorization, because the cost of an error is borne directly by the underwriter.

Official source: Regulated Industries in Próspera.