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

When Does Your Personal Car Become a Commercial Vehicle?

When Does Your Personal Car Become a Commercial Vehicle?

At what point can you call a personal vehicle commercial?

Long-Term-Care Needs

Long-Term-Care Needs

Determine your potential long-term care needs and how long your current assets might last.

Snapshots

Snapshots

Your life is marked by images. Prepare for the unexpected, so you can keep those pictures going.