In self-insurance, what is primarily required to manage potential future judgments against the airport?

In the context of self-insurance, having liquid capital is essential for managing potential future judgments against the airport. Liquid capital refers to readily available funds that can be accessed quickly to cover unexpected liabilities or judgments. This is crucial for self-insurance because it allows the airport to pay claims or settlements without relying on insurance company payouts or external funding sources.

Without sufficient liquid capital, an airport may face significant financial strain when dealing with unexpected legal judgments or liabilities, which could impact its operations and financial stability. Therefore, maintaining a reserve of liquid capital is a strategic approach to ensure that the airport can meet its obligations as they arise, effectively managing self-insurance risks.