The possibility that a need may arise is also referred to as a risk.

Under the terms of the insurance contract and in return for a premium, the insurance company is obliged to → Risk-bearing is obliged to. The → Insurance cover may be limited to individual risks (also referred to as ‘risks’ or ‘perils’, depending on the insurance sector) or may cover all perils.

The term ‘risk’ largely corresponds to that of ‘hazard’. However, it is also used to refer to the subject matter of individual insurance policies, that is, the insured person or the insured object.

Source reference: See the VDT publication “VDT Article Series, Part 5 | Glossary“ and the source cited there.