What is the primary characteristic of pure risk?

The primary characteristic of pure risk is the insurable possibility of loss only. This type of risk encompasses situations where there is a chance of experiencing a loss without any possibility of financial gain. Pure risk is distinct from speculative risk, which involves scenarios where there can be both gain and loss. In the context of insurability, pure risks are typically those that insurance policies are designed to cover, such as accidents, natural disasters, or health-related issues, where the focus is solely on the potential for financial loss. This clarity in defining pure risks is crucial for understanding how various types of risks are managed within insurance frameworks.