A situation in which no financial preparation (including self-insurance) has been made for meeting losses.

The handling of an exposure and its resultant losses through means other than insurance. Alternative methods are self-retention, alternative financing, loss prevention, elimination of the exposure or, in some cases, if there is no method at all, it remains uninsured. Normally, when alternative methods are used, losses are handled as business expenses.

Making no financial preparation for meeting losses.