Business Insurance

Discussion in Other Insurance Type started by ExpertAdvice • Jan 26, 2015.

  1. ExpertAdvice

    ExpertAdviceActive Member

    Joined:
    Sep 5, 2014
    Threads:
    181
    Messages:
    635
    Likes Received:
    46
    I've recently learnt that there's something called a "business insurance". I hope my explanation of this term will help in its understanding. A business insurance is a type of insurance that covers "loss of profit" from a operating, legal business. For instance, If you operate a business and from that business, you want to protect your profit, you will be able to take out an insurance policy to cover any amount of money that you lose in a set period, or from certain circumstances, say, for example, during a natural disaster. What are your thoughts of this?
     
  2. Pat

    PatWell-Known Member

    Joined:
    Mar 28, 2012
    Threads:
    66
    Messages:
    2,725
    Likes Received:
    328
    This is Risk Management, there is an insurance a company can purchase to cover their inventory or the building to limit their losses due to uncertain conditions like a fire or illness. Purchasing this type of insurance is a good move on the businesses part.
     
  3. xTinx

    xTinxWell-Known Member

    Joined:
    Sep 30, 2014
    Threads:
    8
    Messages:
    1,793
    Likes Received:
    191
    Well the principles behind a business insurance are no different from the principles behind travel, auto or fire insurance plans. They all deal with unexpected and non-refundable losses you might incur by accident or because of a force majeure. Business insurance purports to cover the losses incurred in putting up a business or in the course of operating one. Again, you have to read your business insurance policy from cover to cover so that you will know if your claim will hold water.
     
  4. remnant

    remnantActive Member

    Joined:
    Feb 23, 2016
    Threads:
    237
    Messages:
    929
    Likes Received:
    208
    This is an interesting concept. A business can make a profit or a loss. There is a requirement to calculale the intended profit or loss in order to arrive at the deviation. It is a nice concept nonetheless because it is based on percentages. Depending on the vulnerability of the business, it might be a welcome relief or an unnecessary cost.