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?
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.
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.
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.
