Avoidance
Definition of "Avoidance"
Technique of risk management. It ensures that an individual or business does not incur any liability relating to a given activity by avoiding the activity in question. For example, a business that does not own computer equipment cannot incur financial loss due to the destruction of the computer by fire. However, in the real world, the risk control technique of avoidance is rarely practical. A more realistic approach is self-insurance or commercial insurance.
Popular Insurance Terms
Form showing notification that an insurance policy has been renewed with the same provisions, clauses, and benefits of the previous policy. ...
Homeowners policy to cover the owner of a townhouse. ...
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Scheme to recapture excess pension assets by splitting a qualified plan in two, and terminating one of them. In the mid-1980s, many pension plans became "overfunded" because their ...
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