Chapter 14 Flashcards
Risk
is the possibility of loss, damage, or injury
Natural Risk
is a situation caused by acts of nature
Economic Risk
is a situation that occurs when business activities suffer due to changes in the US or world economy
Market Risk
is the potential that the target market for new goods or services is much less than originally projected
Human Risk
Is a negative situation cause by the actions of people.
Risk Management
is the process of evaluating risk and finding ways to minimize or manage loss.
Controllable Risks
are situations that cannot be avoided, but can be minimized by purchasing insurance or creating a risk managements plan.
Uncontrollable Risks
are situations that cannot be predicted or covered by purchasing insurance
Pure Risk
is a risk with a possibility of loss, but no possible gain
Speculative Risk
is a risk that can result in either a financial gain or financial loss.
Insurance
is a financial service used to protect against loss
Uninsurable Risk
is one that an insurance company will not cover.
Insurance policy
defines the type of losses that are covered, amount of coverage in dollars, and other conditions to which the two parties agree.
Premium
Amount insured(me) pays for the insurance coverage
Claim
Process of documenting a loss against a insurance policy
Deductible
Amount the insured is responsible for paying when a claim is made.
Cyber Insurance
covers loss incurred from cyberattacks, such as data breaches and computer viruses.
General Liability Insurance
protects against financial losses that result from legal issues.
Product liability Insurance
protects against financial losses due to a product defect that may cause injury to the user of the product.
Commercial Insurance
Is an insurance that protects commercial property from risks.
Liability Insurance
covers financial losses caused by the actions or negligence of a person or business.
Business Interruption Insurance
covers lost income and expenses cause by a property damage loss.
Fidelity Bond
cover financial, and property losses cause by employee actions.
Directors and Officers Insurance
covers financial, and property losses caused by employee actions.
Data Breach Insurance
covers legal and financial losses sustained when a company’s data files are accessed without permission.
Property Insurance
covers losses and damage to the assets of a business caused by a variety of events, such as floods, fire, smoke, and vandalism.
Workers Compensation Insurance
covers medical expenses and lost wages for employees injured at work
Unemployment Insurance
provides specific benefits to workers who lose their jobs through no fault of their own.
Disability Insurance
provides some income to employees who become sick or injured due to a nonwork-related event or condition.
