Special Risk Insurance
Definition - What does Special Risk Insurance mean?
Special risk insurance refers to an insurance policy that is non-traditional or unusual because the person or entity insured is more exposed to certain risks. These unusual risks might be attributed to the dangerous nature of the insured's profession or industry.
Insuranceopedia explains Special Risk Insurance
Insurance companies cover risks like death, sickness, and property damage. But when an individual or an organization comes into close contact with these risks on a regular basis, they might require special risk insurance.
A professional boxer, for example, is likely to suffer bodily damage sooner and more frequently than an office worker. While traditional life or health insurance will be suitable for the latter, the boxer will require a special risk insurance.
Because of the higher likelihood and frequency of claims, premiums for special risk insurance are more expensive.