The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

CATASTROPHIC HAZARD Definition & Legal Meaning

Definition & Citations:

A RISK event that is characterized by high severity and low frequency, leading to a large difference between expected and actual aggregate losses. Common catastrophic hazards include natural and humanmade events such as earthquakes, hurricanes, windstorms, and terrorism. Although many catastrophic hazards can be protected via INSURANCE, REINSURANCE, or INSURANCELINKED SECURITIES some cannot, as the risk of loss may be too large or the required PREMIUM too high. See also CATASTROPHIC LOSS, CLASH LOSS, SHOCK LOSS.

Disclaimer

This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.