Page 6 - Insurance Surveyors Book Ebook IC S01

Survey And Loss Assessment IC-S01

Risk Classification

Risks have been mainly classified as:

A. Personal, Property or Liability Risk

a. Personal: Potential loss to the persons

b. Property: Potential loss to the property

c. Liability Risk: Potential liability for any individual or institution.

B. Physical, Social Or Market Risk

a. Physical: Storm, Tempest, Flood, Hurricane and such other natural

phenomena.

b. Social: Riot, Strike, Civil Commotion, Burglary, Theft etc

c. Market: The price reduction or the purchase and sale constraints are involved.

C. Pure or Speculative Risk

a. Pure Risk: is considered in the context of the existence of a chance of loss

only, but not the chance of gain at all.

b. Speculative Risk: When there is a chance of gain as well a loss.

D. Static or Dynamic Risk

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