When would You choose, to go for Insurance?
A)After the Contingent Event has occurred.
B)When the Probability of Event-Occurrence is Low, But, Severity is High.
C)When the Probability of Event-Occurrence is Low, along with the Severity.
D)When you can finance the Losses of the Contingent-Event, on Your Own.

Question

Quizplus · Accepted Answer

Insurance is typically sought when the likelihood of an event happening is low, but the potential impact or severity of the event is high, making it financially prudent to transfer the risk to an insurance company.

When Would You Choose, to Go for Insurance