A business finds that employees are involved in many road accidents that result in damages to its fleet of motor vehicles,despite having driving training and instruction.Rather than fully insuring its equipment,the business elects to insure its vehicles subject to a deductible of $1,500 per vehicle.Which approach to risk management does this plan reflect?

Question

Quizplus · Accepted Answer

The business is choosing to retain a portion of the risk by opting for a deductible, meaning they will cover the first $1,500 of any damage themselves, rather than transferring the entire risk to the insurance company.

A Business Finds That Employees Are Involved in Many Road