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" economic science, economics, political economy - the branch of social sci...
(redirected fromMorale Hazards) Thesaurus Financial moral hazard n. 1.The risk to an insurance company that the holder of a policy will destroy the insured property in order to collect the monetary reimbursement available under the policy.