Risk Transfer

Risk Transfer

Risk transfer is the term used in business to describe the process and/or technique of moving the risk of loss from one party to another. In some cases, this may be done through an insurance policy or other type of contract. The goal of risk transfer is to protect the party who bears the risk (the “transferee”) from any potential financial losses that could occur as a result of that risk.

There are many different types of risks that can be transferred, including but not limited to: property damage, personal injury, business interruption, and product liability. The terms of the risk transfer will vary depending on the type of risk involved and the parties involved in the transaction.