Which type of risk is insurable under standard insurance practices?

Pure risk is the correct answer because it refers to situations that involve only the possibility of loss or no loss, with no chance for profit. This type of risk is insurable because it is typically defined, measurable, and involves outcomes that are predictable, allowing insurance companies to assess and manage these risks effectively. Examples of pure risk include events like fire, theft, and natural disasters, where the insurer can calculate potential losses and establish appropriate premiums.

In contrast, speculative risk includes scenarios where there is a possibility of gain as well as loss, such as investing in the stock market or starting a new business. This type of risk is not insurable under standard practices because the potential for profit complicates the assessment and management of the risk for insurance companies.

Unquantifiable risk refers to risks that cannot be measured in monetary terms, making it challenging for insurers to offer coverage. Such risks do not usually fit within the traditional insurance model.

Business risk encompasses various uncertainties that a business may face, such as market competition or operational challenges. While these risks affect profitability, they do not meet the criteria for insurability like pure risks do.

Given these points, pure risk stands out as the only type that aligns with the fundamental principles of insurance, making it the correct