Highly Protected Risk

What Does Highly Protected Risk Mean?

A highly protected risk is an insurance industry term that refers to a risk that has been controlled and managed through various protective measures. In other words, it does not mean the absence of risk; rather, the risk is still present but has been reduced or mitigated to some extent.

Insuranceopedia Explains Highly Protected Risk

Burglary is a risk for any homeowner. However, by implementing defensive measures such as installing smart surveillance devices, timers to regulate lighting, and deadbolt locks, the risk of burglary can be reclassified as a highly protected risk.

Highly protected risks are less risky to insure, which is why coverage for them is typically offered at a lower premium.