Multiple choice

By transferring risk to insurer, it becomes possible

  1. not to worry about floods

  2. to enjoy and make money from insurance

  3. not to worry about a fire in the factory

  4. to enjoy peace of mind and plan business more effectively

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

By transferring the risk to an insurer, it becomes possible to enjoy peace of mind, invest funds that would otherwise have been set aside as a reserve and plan one’s business more effectively. It is precisely for these reasons that insurance is needed.