Which type of risk involves a loss from an event that the insured did not plan?

Pure risk is defined as a situation where there is a possibility of loss or no loss, but no possibility of gain. In essence, it refers to events that are typically unplanned and can lead to harm or damage, making them insurable. Examples include risks associated with natural disasters, theft, or accidents, all of which can lead to loss without any potential for financial gain.

In contrast, speculative risk involves scenarios where there is a chance for either a profit or a loss, such as investments in the stock market or business ventures. Calculated risk refers to situations where the potential outcomes and their impacts can be estimated, allowing for informed decision-making. Financial risk entails the possibility of losing financial assets or capital due to various factors, but does not necessarily imply loss from an unplanned event. Therefore, pure risk accurately captures the idea of insurable events that result in unforeseen losses.