Big City Taxi plans purchased an insurance policy for its fleet of vehicle that includes a $1000 deductible for each claim made against the policy.Which legal risk management strategies is Big City Taxi engaging?

Question

Quizplus · Accepted Answer

Big City Taxi is engaging in transference and retention as part of its risk management strategy. By purchasing an insurance policy, it transfers the risk of large financial losses to the insurance company. The $1000 deductible represents the retention aspect, where the company retains a portion of the risk (up to $1000 of loss per claim) itself.

Big City Taxi Plans Purchased an Insurance Policy for Its