insurable risk

insurable risk definition - business

insurable risk

A financial risk that can be transferred to an insurance company. For a risk to be insurable it must be random, definable, and measurable. In addition, an insurance company must be able to charge a sufficient but reasonable premium in order to offer coverage.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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