Which term is used to describe a risk that insurance underwriters are willing to cover?

The term that describes a risk that insurance underwriters are willing to cover is "insurable risk." An insurable risk meets certain criteria that make it acceptable to insurers, which typically include factors like the risk being measurable, having a potential for loss that is not catastrophic, and being part of a larger set of similar risks in order to allow for pooling of risk among policyholders. This category is essential for insurance companies to assess whether they can adequately manage and cover the risk without incurring unsustainable losses.

In contrast, high risk, severe risk, or minimal risk do not accurately capture the specific criteria that define a risk which is acceptable for coverage by insurers. High and severe risks often imply a higher likelihood of loss and may be uninsurable, while minimal risk refers to scenarios where the risk of loss is very low, possibly leading to lower premiums or coverage limits.