Risk Sharing
/ˈrɪsk ˈʃɛrɪŋ/
Definitions
- (n.) The allocation of potential financial losses or gains between parties in a contract or agreement to minimize individual exposure.
The partnership agreement included a risk sharing clause to distribute liability among the members.
- (n.) A principle in insurance law where the insurer and insured share responsibility for losses, often seen in deductibles or co-insurance.
Risk sharing in insurance policies encourages policyholders to avoid small claims.
Forms
- risk sharing
Related terms
See also
Commentary
Risk sharing clauses require clear drafting to define the scope and limit of each party’s liability, ensuring enforceability and clarity in dispute resolution.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.