Final answer:
The cost of paying and defending liability claims is an indirect loss from pure risk.
Step-by-step explanation:
No, the statement is true. The cost of paying and defending liability claims is considered an indirect loss from pure risk. Pure risk refers to a situation where there is only a chance of loss or no loss at all. Indirect losses are those that are not directly related to the risk, but still occur as a result of it. In this case, the cost of paying and defending liability claims is a consequence of the risk of being held liable for damages or injuries. For example, if a business is found liable for a customer's injury, they may have to pay for medical expenses or legal fees. These costs are considered indirect losses because they are not the immediate consequences of the risk, but rather the expenses incurred to mitigate the risk or compensate for the losses.