In insurance, the extra amount added to substandard risks is often called what?

The additional amount added to the premiums of substandard risks is referred to as a loading fee. This fee is applied to cover the increased risk associated with insuring individuals who might present a higher likelihood of making a claim due to factors such as health issues, hazardous occupations, or risky lifestyle choices. By implementing a loading fee, insurers ensure that they maintain profitability while still offering coverage to individuals who otherwise would be considered high-risk.

In this context, while other terms like "premium adjustment" could imply changes to premiums, they do not specifically denote the additional charge for substandard risks. "Risk assessment" refers to the process of evaluating the likelihood of a claim, rather than a financial term related to charging higher premiums. "Surcharging" could also imply additional fees but is more commonly associated with specific instances, such as traffic violations in auto insurance, and does not have the same universal application across insurance types as loading fees do.