Which action is part of risk transfer?

Risk transfer involves shifting the financial burden of potential losses from one party to another, typically by means of insurance. When you insure a property against potential tree damage, you are effectively transferring the risk associated with that damage to the insurance company. This means that in the event of an incident—such as a tree falling and causing damage—the financial consequences are mitigated as the insurer covers those costs.

Regular tree maintenance, while important for managing and reducing the risk of tree-related issues, does not transfer risk; instead, it focuses on prevention and management. Increasing tree canopy coverage contributes to environmental benefits but does not specifically address risk transfer. Similarly, utilizing native species for landscaping is beneficial for ecological reasons but does not relate to the financial strategy of transferring risks associated with tree damage. Thus, insuring property is the action that best embodies the concept of risk transfer in this context.