Pure Risk
Categories: Credit
It haunts you in the night...in the dark, where you can’t see...where you don’t have control.
Pure risk. It can happen to anyone.
Pure risk is risk that can’t be prevented. If the event happens, it couldn’t have been helped. Think: Mother Nature. Floods, tornados, hurricanes, fires, plagues of frogs, etc.
It might not happen to you. But it might. And nobody really thinks it’ll happen to them. But it does happen to somebody. How to mitigate pure risk? Avoid it (ha), accept it (haha!), and reduction...now that’s what we’re talking about.
How do you reduce pure risk? You buy it.
For insurance purposes, pure risks have one of three categories: property, personal, or liability. Good thing there are property, personal, and commercial liability insurance policies.
