Pure Risk

Last updated: January 14, 2017

What Does Pure Risk Mean?

Pure risk (or absolute risk) refers to an unavoidable and uncontrollable event where the outcome eventually leads to loss, such as physical death or natural disaster. Damage or loss brought about by pure risk can be covered by an insurance policy.


Insuranceopedia Explains Pure Risk

There is no gambling about a pure risk. It will eventually happen. A glaring example is the death of a person. Since mortality always happens, a person gets an insurance to get a death benefit that will give financial security to his or her survivors.

There is no stopping nature and the disasters that it can bring. Property owners, aware of the risks these natural disasters bring, insure their property so that once they happen, they can eventually operate their business or rehabilitate their property.



Absolute Risk

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