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Risk is the uncertainty or chance of a loss occurring. The two types of risks are pure and speculative, only one of which is insurable.
Pure risk refers to situations that can only result in a loss or no change. There is no opportunity for financial gain. Pure risk is the only type of risk that insurance companies are willing to accept.
Speculative risk involves the opportunity for either loss or gain. An example of speculative risk is gambling. These types of risks are not insurable.