Insurance

What is Risk?

Risk

[risk]

noun

1.

Risk is the likelihood that an insured event occurs, that is, an event in which the insurance company is likely to pay out a Claim. Insurance companies use Risk when determining whether to insure a home, car, or individual, and when setting Premiums. People with lower Risk generally pay lower rates, and people with higher Risk generally pay higher rates.

Have A Question About This Topic?

Thank you! Oops!

Related Content

Coaches

Coaches

Coaches have helped you your whole life, in ways big and small. We'd like to be one of them.

The Richest Man in Babylon

The Richest Man in Babylon

In good times and bad, consistently saving a percentage of your income is a sound financial practice.

10 Most Common and Costly Small Business Claims

10 Most Common and Costly Small Business Claims

Here are the 10 most common claims against small businesses. Are you covered?