Which of the following is an example of insurable risk

The most common examples are key property damage risks, such as floods, fires, earthquakes, and hurricanes. Litigation is the most common example of pure risk in liability. These risks are generally insurable.

What is insurable risk?

Insurable risks are risks that insurance companies will cover. These include a wide range of losses, including those from fire, theft, or lawsuits. When you buy commercial insurance, you pay premiums to your insurance company. In return, the company agrees to pay you in the event you suffer a covered loss.

What are the 3 elements of insurable risk?

Most pure risks can be divided into three categories: personal risks that affect the income-earning power of the insured person, property risks, and liability risks that cover losses resulting from social interactions. Not all pure risks are covered by private insurers.

Which of the following types of risk is insurable?

Pure risk is the only type of risk that is insurable because there is only the chance of loss. The Law of Large Numbers allows the probability of loss to become more predictable.

Which of the following is an example of an uninsurable risk?

A risk that an insurer will not take on. For example, this may be where an event is inevitable (such as a terminally-ill person's death), gradual (such as rust or corrosion) or against the law.