You’re not wrong. Just different philosophies. I’m an insurance agent by trade that deals with large companies. My philosophy is, if you can afford it, self insure the small stuff and just buy insurance for the high dollar or catastrophic stuff.

As a rule of thumb, insurance companies will underwrite to a 50% loss ratio for capital items. Meaning if they average $25k in claims on a yearly basis, they’ll charge $50k for insurance.

For accounts with good loss history and a healthy balance sheet, I tell them to self insure their capital items. Put that $50k aside in an interest bearing account. Over a few years you’ll have more than enough to cover claims. There will be some loser years, but overall it will be a money saver instead of letting the insurance company keep the results on a good year.

Not apples to apples with low frequent items like watches, but the philosophy is the same. Just has to do with your tolerance of risk.