Risk and Insurance

Risk can be defined as a situation involving exposure to danger. In insurance terms, risk is the chance something harmful or unexpected could happen. This might involve the loss, theft, or damage of valuable property and belongings, or it may involve someone being injured.

Insurers assess the various risks by looking at the probability of the insured event occurring and how much it would cost to repair or replace. This assessment helps the insurer determine the premium amount to charge for insurance.