Pure risk keeps the insurance industry from being considered gambling. With a pure risk you have three situations:

1. Chance of loss
2. Chance of no no loss
3. No chance of gain

With Workers Compensation, an employee may be injured while on the job or may never incur a job injury. The insured would never receive a gain from either #1 or #2 above occurring. Pure risk is one of the underpinnings of insurance theory.