The idea that insurance float is mainly a low-cost investment capital ignores the reality that it is a contingent obligation with finite liquidity requirements. Confusing a liability with a perpetual funding source is a costly mistake; premiums are not free capital but funds that must be repaid, often unexpectedly. For example, a series of natural disasters or an epidemic can quickly exhaust reserves, turning a source of returns into a drain on liquidity. There are no unlimited funds; the balance sheet has limited room for maneuver.