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
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Arrangement whereby the insured pays the insurance company a relatively small monthly premium payment. In exchange for this premium payment, the insurance company processes and pays claims ...
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