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You missed gat's key words - as long as the risk is relatively small - increase the risk diminish the rewards and you get rid of the incentive to go into the pirating career.
You are right about entry into ports but insurance will be to high, where do you get that from.
It's a fact, arming ships will increase insurance costs, since insurance must now cover a range of liability and death situations, but don't take my word. It's easy enough to check out on the Internet. Mercantile marine insurance would probably be a good starter. .