Risks

Insurable and Non-Insurable Risks

Generally a person can insure most things.  However there are some exceptions and exclusions.  For a risk to be insurable the following conditions must be present:

• There must be an insurable interest in the thing or person being insured.

• There must be a large number of similar risks being insured.

• Any losses incurred must be accidental

• The risk must not be too catastrophic for the insurance company i.e. the possible loss should not be so great as to ruin the insurance company

• It must be possible to calculate the risk of a loss occurring.

  In the absence of any of these five conditions the risk is uninsurable.