What does Risk Transfer mean? Read on to discover the definition & meaning of the term Risk Transfer - to help you better understand the language used in insurance policies.
A risk transfer occurs when one party pays a certain amount of money to another party in exchange for the second party taking on a risk from them.
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 Transfer. 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: