What does Risk Reduction mean? Read on to discover the definition & meaning of the term Risk Reduction - to help you better understand the language used in insurance policies.
Risk reduction, or loss mitigation, is a risk management technique. It refers to the way an insurance company can reduce its financial losses by implementing measures that will prevent actualizing risks or minimizing the number that can actually happen.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
We hope the you have a better understanding of the meaning of Risk Reduction. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for: