Which statement best describes the purpose of combining insurance with risk control for loss exposures?

Which statement best describes the purpose of combining insurance with risk control for loss exposures?

• A. To reduce costs
• B. To transfer all risk to the insurer
• C. To address loss exposures related to occupational injury and disease
• D. To eliminate all occupational risks

Answer: (C)

Managing loss exposures through both prevention and financing is the idea here. Risk control focuses on reducing how often injuries or occupational diseases happen and how severe those injuries can be. Insurance provides a financial safety net for the losses that still occur, covering medical costs, wage benefits, and liability expenses. Put together, this approach addresses the kinds of losses that arise from workplace injuries and disease. This isn’t just about cutting costs, and it isn’t about transferring every bit of risk to the insurer. Some risk will always remain after preventive measures, and complete elimination of all occupational risks isn’t possible. Hence, the best description is that combining insurance with risk control addresses loss exposures related to occupational injury and disease.

Managing loss exposures through both prevention and financing is the idea here. Risk control focuses on reducing how often injuries or occupational diseases happen and how severe those injuries can be. Insurance provides a financial safety net for the losses that still occur, covering medical costs, wage benefits, and liability expenses. Put together, this approach addresses the kinds of losses that arise from workplace injuries and disease.

This isn’t just about cutting costs, and it isn’t about transferring every bit of risk to the insurer. Some risk will always remain after preventive measures, and complete elimination of all occupational risks isn’t possible. Hence, the best description is that combining insurance with risk control addresses loss exposures related to occupational injury and disease.