Which of the following risks cannot be hedged by an insurance?
A)Exports damaged during shipment
B)Theft during movement of goods
C)An electrical fire at a warehouse
D)Decreased sales resulting from poor salesmanship

Question

Quizplus · Accepted Answer

Insurance can only hedge against tangible and measurable risks, such as physical damage or theft. Decreased sales resulting from poor salesmanship is not a tangible risk and cannot be insured against.

Which of the Following Risks Cannot Be Hedged by an Insurance