What term refers to possible financial losses in the insurance context?

The term that refers to possible financial losses in the context of insurance is "Risk." In insurance, risk indicates the uncertainty associated with the potential for loss, which is the basis for underwriting policies and determining premiums. Insurers assess various risks when providing coverage to ensure that they can manage potential losses while remaining profitable.

Coverage refers to the protection provided by an insurance policy against specific risks, while premium is the amount paid for that coverage. The deductible is the amount the insured must pay out of pocket before the insurance coverage kicks in. Each of these terms relates to the overall understanding of insurance, but "risk" specifically encapsulates the concept of potential financial loss that the insurer agrees to cover.