Final answer:
Insurance addresses pure risks, which involve only the possibility of loss, with no chance for gain. It helps individuals and businesses mitigate the financial impact of these risks.
Explanation:
Insurance addresses pure risks. Pure risks are situations that involve only the possibility of loss, with no chance for gain. Examples of pure risks include natural disasters, accidents, and death. Insurance helps individuals and businesses mitigate the financial impact of such risks by providing compensation in the event of a covered loss.
Learn more about Types of risk covered by insurance here:
https://brainly.com/question/34231203
