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

Did You Know This Fact About Freestanding Structures?

Did You Know This Fact About Freestanding Structures?

Separate structures on your property may have to be insured separately.

Should You Consider an Annuity for Retirement?

Should You Consider an Annuity for Retirement?

Annuities are a popular and well-established method of providing a secure retirement income. Here are our answers to a few of the most common questions asked by people who are considering this option.

The Value of Insuring Against Life’s Risks

The Value of Insuring Against Life’s Risks

Building wealth requires protection from the forces of wealth destruction.