What is one requirement for a loss to be covered by insurance?

The requirement that a loss must be unintentional and measurable is fundamental to how insurance operates. Insurers aim to cover events that are accidental or unforeseen, rather than losses that result from intentional actions. This unintentional aspect ensures that individuals or businesses are protected from unexpected events that can lead to significant financial strain.

Furthermore, the requirement for a loss to be measurable is crucial; it allows insurers to quantify the loss and determine the appropriate compensation. Measurable losses can be assessed in terms of costs associated with damages, repairs, or other financial impacts. This quantifiable nature is essential for underwriting policies and calculating premiums.

In contrast, other options, such as the need for the loss to be predictable or occur regularly, limit the types of risks that insurance covers. Insurance is designed to manage uncertainty, not predictable occurrences. Similarly, merely being financially significant does not guarantee coverage, as the nature of the loss and how it relates to the policy terms are key to determining coverage eligibility.