pure risk

  

Definition

Situation where there is a chance of either loss or no loss, but no chance of gain; for example either a building will burn down or it won't. Only pure risks are insurable because otherwise (where the chance of the occurrence of a loss is determinable) insurance is akin to betting and the insured may stand to gain from it a situation contrary to the most fundamental concept of insurance. Also called absolute risk.

Use pure risk in a sentence

  • There was a pure risk involved, but either way we knew we had to movie forward and not worry about failure at all.

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  • You must factor in the pure risk when you are trying to decide if it is right to take on a project.

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  • Rock climbing may be a sport of pure risk, but the level of accomplishment and pure self satisfaction at the end of your climb is simply unmatched by anything else.

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