What Does Spread of Risk Mean?

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What does Spread of Risk mean? Read on to discover the definition & meaning of the term Spread of Risk - to help you better understand the language used in insurance policies.

Spread of Risk

Spread of Risk

The pooling of risks from more than one source. Can be achieved by insuring in the same underwriting period either a large number of homogeneous risks or multiple insured locations or activities with noncorrelated risks.

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

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