The
Definition Of

Pure risk

Pure Risk involve only a chance of loss.There is only possibility of loss but no possibility of profit.

According to Brigham and Others,” Pure risks are that offer only the prospect of a loss. Examples include the risk that a plant will be destroyed by fire or that a product liability suit will result in a large Judgment against the firm.”


Pure risk is the type of risk where there is only the possibility of loss.

Share it:  Cite

More from this Section

  • Customs Duty
    Customs Duty is tax levied by the government on goods crossing their borders, usually ...
  • Corporate bonds
    Corporate bonds is debt securities issued by private corporations with original maturities ...
  • Immediate annuity
    Immediate annuity is an annuity where the first payment is due one payment period from ...
  • Integrated risk management
    Integrated risk management is a risk management technique that combines coverage for pure ...
  • Identity theft endorsement
    Identity theft endorsement is an endorsement to a homeowner’s policy that reimburses ...