What Does Risk Classification Mean?

Free Business Insurance Quote Click Here
What does Risk Classification mean? Read on to discover the definition & meaning of the term Risk Classification - to help you better understand the language used in insurance policies.

Risk Classification

Risk Classification

Grouping of different risks according to their estimated cost or likely impact, likelihood of occurrence, countermeasures required, etc. Credit risk, or example, is classified according to the likelihood of the collection of accounts receivable.

We hope the you have a better understanding of the meaning of Risk Classification.

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z