Pure risk describes a situation with potential loss or no loss, rather than an opportunity for profit from the risk itself.
The distinction that matters
The classification does not mean every pure risk is insurable or covered by an existing policy.
What to check
- Define the possible loss.
- Check whether cover is available.
- Review exclusions and risk controls.
Example to discuss
A shop fire exposure can be described as pure risk, but the owner still needs to check the property and interruption policy conditions.
This is a hypothetical comparison, not a customer claim or a determination of cover.
Sources and further reading
General information only. The policy, schedule and applicable rules determine the actual position. For a personal decision, use an appropriately qualified adviser or the relevant provider.