Which of the following represents an uninsurable risk to a business firm?
A) the possibility that its warehouse will burn down
B) the possibility that several of its workers will be injured at work
C) the possibility that an adverse change in consumer tastes will decrease the demand for the firm's product
D) the possibility that a tornado will damage the plant and stop production for a month

Question

Quizplus · Accepted Answer

An uninsurable risk is a risk that cannot be covered or compensated by an insurance policy. In this case, a change in consumer tastes is a market risk that cannot be insured against. The other options, such as fire, worker injury, and property damage due to natural disasters, can be covered by insurance policies.

Which of the Following Represents an Uninsurable Risk to a Business