What does the phrase "insurable risk" mean?

The phrase "insurable risk" refers to risks that satisfy specific criteria established by insurance companies for coverage. These criteria typically include factors such as being predictable, not being catastrophic in nature, and having a measurable financial loss associated with them. Insurance is designed to provide financial protection against certain risks, and for a risk to be insurable, it must also have a degree of uncertainty about whether the loss will occur.

Insurable risks must be quantifiable and arise from events that are outside the control of the insured party. For example, risks related to fire damage, theft, or natural disasters can be insured because they meet these criteria and allow insurers to effectively assess the likelihood of loss and set appropriate premiums.

The other options do not accurately represent the concept of insurable risk. While some risks may incur no financial loss or may be the result of negligence, these do not conform to the requirements for being insurable. Instead, insurable risks are specifically defined by the eligibility for insurance coverage based on established criteria.