speculative risk

Dictionary of Business Terms for: speculative risk
speculative risk

uncertainty of the chance of a financial loss or a financial gain. For example, betting on a horse presents a chance for financial gain or financial loss. Insurance is not intended to cover speculative risks.

Dictionary of Insurance Terms for: speculative risk
speculative risk

uncertain prospect of financial gain or loss. A business investment that could either return a profit or sustain a loss, such as the purchase of a common stock, is an example of a speculative risk. In most instances, speculative risks are not insurable.

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