TYPES OF PURE RISKS

Pure risks are types of risk where no profit or gain is achievable and only full loss, partial loss or break-even situation are probable outcomes. You will find three types of pure risk.

The effect is obviously unfavorable, or could be the same situation (as existed prior to the event) has remained without giving a birth to a gain (or loss). Pure risk is a predicament that holds out only the likelihood of loss or no loss or no loss.
As an example, if you purchase a fresh Samsung Note 7, you face the chance of the book being stolen or not being stolen and no profit from this situation.
There is only the chance of loss or no loss, and no prospect of gain or profit under pure risk.
So, Pure risks are those risks where the outcome shall result into loss only or at best a break-even situation. We cannot think about a gain-gain situation.
Forms of Pure Risks are, property,liability
Personal risks.
Property risks.
Liability risks
Since pure risks are generally insurable, the discussion on risk is skewed towards pure risks only.
1. Personal Risks
These are the risks that directly affect the individual's power to earn income. Personal risks may be classified into the next types:
Premature Death: Death of the bread earner with unfulfilled or unprovided financial obligations.
Old Age: It refers to the risk of devoid of sufficient income at the age of retirement or this becoming so that mere is possible that the in-patient might not manage to earn the livelihood.
Sickness or Disability: The risk of poor health or disability of a person to earn the way of survival. E.g. the likelihood of damage to limbs of a driver as a result of an accident.
Unemployment: The risk of unemployment as a result of socio-economic factors causing financial insecurity.
2. Property Risks
These are the risks to the persons in possession of the property being damaged or lost. The immovable like land and building being damaged as a result of flood, earthquake or fire, the movables like appliances and personal assets being destroyed because of the fire or stolen.
The losses might be direct or indirect/consequential. An immediate loss implies the visible financial loss to the property as a result of mishappenings. Whereas, the indirect ones will be the losses arising from the occurrence of an incident causing direct/physical damages or loss.
The loss to crops as a result of flood is a direct loss – the destruction of the growing power is a consequential one.
3. Liability Risks
These are the risks arising from the intentional or unintentional injury to the persons or damages for their properties through negligence or carelessness.
Liability risks generally arise from the law. E.g. liability of the employer beneath the workmen's compensation law or other labor laws in India. Along with the aforementioned categories, risks could also arise because of the failure of others.
As an example,
The financial loss arising from the non-performance or standard performance in a contract – in engineering/ construction contracts.