Insurable Risk Diagram

What is risk and when should I transfer it to an insurance policy? This is broad sweeping question though. Our answer is that risk is simply any situation that contains uncertainty of financial loss, and in terms of risk transfer, a diagram may be the best way to depict and think about risk, starting with what can be considered Low Severity, non-business threatening risks and what should be viewed as High Severity, business threatening risks.

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Insurable Risk Overview:

What is risk and when should I transfer it to an insurance policy? This is broad sweeping question though. Our answer is that risk is simply any situation that contains uncertainty of financial loss, and in terms of risk transfer, a diagram may be the best way to depict and think about risk, starting with what can be considered Low Severity, non-business threatening risks and what should be viewed as High Severity, business threatening risks.