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  2. Insurance Terms Starting With P

Pure Risk Assessment

What is Pure Risk Assessment?

Pure risk insurance, also known as pure risk coverage, is a type of insurance that protects against losses from uncontrollable events. Pure risk involves situations where there is a chance of loss or no loss at all, but no opportunity for gain. This type of insurance focuses on mitigating the negative impact of potential losses rather than seeking financial gain. Examples of pure risk events include natural disasters, theft, and liability claims. Pure risk insurance policies are designed to provide compensation for the insured party in the event of such unforeseen losses, offering financial security and peace of mind.