Which of the following is a category of uninsured loss?

• A. Revenue loss due to rental cancellations
• B. Employee accidents
• C. Customer complaints
• D. Refunds issued

Answer: (B)

Employee accidents are classified as a category of uninsured loss because they typically result in costs that a company must absorb without insurance coverage. This category can include various expenses such as medical costs for injured employees, potential legal fees associated with workplace injuries, and costs related to lost productivity due to employee absence.

In contrast, situations like revenue loss due to rental cancellations, customer complaints, and refunds issued may typically be insurable or can be mitigated through other business practices and measures. Therefore, they do not fit the definition of uninsured loss, which most directly applies to situations where the organization bears the full financial burden without the safety net of insurance. Understanding uninsured losses is vital for businesses to manage risk and ensure they are prepared to handle potential financial impacts effectively.