It can also include other classes of risk, such as fraud, legal risks, physical or environmental risks.

Insurers can be authorised to underwrite all classes of risks or to underwrite some classes but not others.

Instead of two there will now be four classes of risk, which will make it much easier to assess the risks and take the necessary protective measures.

The classes of risk covered by these paragraphs of the FSMA Regulated Activities Order are as follows:

For example, a company may discover that it needs to change contractual terms to protect against a new class of risks, or collect cash reserves to purchase anticipated technologies or equipment.

He uses this data, Project Experience Risk Information Library (PERIL) database, to quantify and rank classes of risk.

In line with current international scientific knowledge it has introduced new and clearer distinctions, providing for four classes of risk instead of the former two, as is already the case in many European countries.

A line sheet, or line guide, can also be a schedule that a company keeps for guidance showing the top lines that can be written inclusive of reinsurance on different classes of risk.

The harm within the risk (HWR) test determines whether the victim was among the class of persons who could foreseeably be harmed, and whether the harm was foreseeable within the class of risks.

However, since the nature and extent of the risks to humanity and the environment which are associated with these micro-organisms are not fully known, it is imperative that relevant work is carried out in certain areas which are clearly defined for each class of risk.