Definition of Pure risk:
Situation where there is a chance of either loss or no loss, but no chance of gain; for example either a building will burn down or it wont. Only pure risks are insurable because otherwise (where the chance of the occurrence of a loss is determinable) insurance is akin to betting and the insured may stand to gain from it a situation contrary to the most fundamental concept of insurance. Also called absolute risk.
Pure risk is a type of risk that cannot be controlled and has two outcomes: complete loss or no loss at all. There are no opportunities for gain or profit when pure risk is involved.
Pure risk is generally prevalent in situations such as natural disasters, fires, or death. These situations cannot be predicted and are beyond anyone's control. Pure risk is also referred to as absolute risk.
How to use Pure risk in a sentence?
- Pure risks can be divided into three different categories: personal, property, and liability.
- Many cases of pure risk are insurable.
- Pure risk cannot be controlled and has two outcomes: complete loss or no loss at all.
- There was a pure risk involved, but either way we knew we had to movie forward and not worry about failure at all.
- There are no opportunities for gain or profit when pure risk is involved.
- Rock climbing may be a sport of pure risk , but the level of accomplishment and pure self satisfaction at the end of your climb is simply unmatched by anything else.
- You must factor in the pure risk when you are trying to decide if it is right to take on a project.
Meaning of Pure risk & Pure risk Definition