Which of the following is $($are$)$ the likely reason$($s$)$ for ERL to

prefer insurance to risk retention for managing their property

and liability risk?

A$.$ The total annual cost of coverage with insurance is less than

the expected loss.

B$.$ Insurance can help ERL to negotiate better contract terms

with their suppliers and lenders.

C$.$ Insurance eliminates the risk of negative cash outflows in the

event of loss at the expense of a fixed annual premium.

A only

B only

C only

B and C

$A,B,$ and C