Risk

The uncertainty of the possibility of loss for which one purchases insurance. It is important to note that there are different types of risk, but not all risks may be insured against. Insurance is only obtainable to cover risks where there is no possibility of enrichment, only loss. These types of risk are known as pure risks and include such things as fire or other damage and can be covered by insurance, while speculative risk, like gambling or investing, cannot be insured.