What type of risk presents the chance of loss but no opportunity for gain and is insurable?

The type of risk that presents the chance of loss without any opportunity for gain and is insurable is pure risk. Pure risk refers to situations where there are only two possible outcomes: loss or no loss, with no potential for profit or financial gain. This contrasts with speculative risk, which includes scenarios that involve the possibility of both loss and gain, such as investing in the stock market or starting a new business venture.

In the context of insurance, pure risks are the ones that insurers can underwrite and cover since they can predict the likelihood of loss based on statistical data. Common examples of pure risk include events such as natural disasters, theft, or accidents, where policyholders can purchase insurance to protect themselves against the financial impact of such losses.

Business risk and investment risk also involve uncertainties but include elements of potential gain alongside the possibility of loss. These risks are often not insurable in the traditional sense through standard insurance policies because they involve performance outcomes or market fluctuations that can result in profit or loss. Therefore, pure risk is the clear choice when considering risks that are solely associated with potential loss and can be addressed through insurance.