What does Risk mean? Read on to discover the definition & meaning of the term Risk - to help you better understand the language used in insurance policies.
Risk is the probability that a particular loss will occur. Risk is very relevant for insurance companies because it can determine whether or not they will have to spend money satisfying a claim. Risk is also relevant for policyholders because if they represent a higher risk, then that can mean they may need to pay higher premiums.
We hope the you have a better understanding of the meaning of Risk.