Which type of risk involves chance of loss only and is insurable?

The type of risk that involves the chance of loss only and is insurable is pure risk. Pure risk refers to situations that can result in a loss or no loss, with no potential for financial gain. This makes it distinct from other types of risk, like speculative risk, which involves the possibility of both profit and loss.

Insurers are willing to cover pure risks because they can be more easily quantified and evaluated. For instance, events such as natural disasters, accidents, or illness can lead to financial loss and are generally the types of scenarios that insurance is designed to protect against.

In contrast, speculative risks are those associated with activities that can yield a profit or a loss, and are typically not insurable because they involve uncertainty on both ends. High risk and market risk do not specifically address the insurable nature of the risk and also might encompass scenarios with potential gains, which makes them unsuitable for traditional insurance coverage.