Which of the following is not an example of a pure risk?

a. The risk of someone suing you for getting injured on your premises.

b. The risk of your savings plan losing money.

c. The risk of not being able to live in your home because of a flood.

d. The risk of not being able to work because of a work-related injury.

• The correct answer is a; the risk of someone suing you for getting injured on your premises.

The risk associated with a person suing another for injury in their own house doesn't explain a pure risk. In this case, an insurance company cannot ensure this form of risk because it cannot bear the loss. However, all the other stated options are forms of pure risk. For instance, the risk associated with losing money through a savings plan can be insured because it is a pure personal risk. Secondly, the risk of floods is a form of property risk; thus, an insurance company can insure a property. Finally, the risk of experiencing a work-connected injury is a form of a pure liability risk where a company can ensure its workers in case of injury.