Term Of The Day – Prohibited Risk
A Prohibited risk is any class of business that has been excluded by the underwriters of an insurance carrier. These classes of businesses will not be insured under any circumstance. This is also known as uninsurable risk
Workers Compensation insurers avoid certain markets resulting in groups of uninsurable risks. The state assigned risk pools prevent a business from being completely uninsurable. The tradeoff is exorbitant rates.

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