Definition of moral hazard Moral hazard

mor•al haz•ard

We found 2 definitions of moral hazard from 2 different sources.

What does moral hazard mean?

Noun
moral hazard - (economics) the lack of any incentive to guard against a risk when you are protected against it (as by insurance); "insurance companies are exposed to a moral hazard if the insured party is not honest"
		endangerment, jeopardy, hazard, peril, risk an obstacle on a golf course

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moral hazard (Noun)
The prospect that a party insulated from risk may behave differently from the way it would behave if it were fully exposed to the risk.