Insurable Risk

Insurable Risk is a one kind of risk, which is conforms to the norms and specifications of the insurance policy in such a way that the criterion for insurance is fulfilled. It is a situation that an insurance company will protect you against because it is possible to calculate how likely it is to happen, how much damage it will cause. It also conforms to the following criteria: The possible loss must be plainly explained; the loss must be accidental and significant enough to be considered a hardship to the insured; the loss must also be part of a similar group of risks; and finally, the insurer must be able to compute the probability of a loss and a realistic cost for the insurance.