Alexandria currently has $80,000 in wealth saved up from her private speech therapy practice. Alexandria plans on working for 15 more years and is afraid there’s a 5% chance that she will face a malpractice lawsuit during that time, which would cause her wealth to fall to $20,000 as she has to pay for legal fees and her practice suffers. If she doesn’t face a malpractice lawsuit, then she expects her wealth to grow to $120,000. She decides to buy malpractice insurance even though the annual premium of $3,200 is more expensive than the actuarially fair annual premium of $2,800. What are some reasons that she would purchase insurance that costs her more than actuarially fair insurance?