Basis of Distinction :
1. Meaning :
Pure risk : 1.Pure risk is the risk which involves only the possibility of loss or no loss.
Speculative risk: Speculative risk involves both the possibility of gain as wellas possiblity of loss.
2. Possibility of profits/ loss :
1.Occurence of this risk may result in loss only and no gains.
Speculative risk : Occurance of this risk may result in possibility of both gain as well as loss.
3. Risk coverage :
1.Insurance services provides coverage of such risks.
Speculative risk : such risks can not be covered under insurance provisions.