Insurance Terms Defined: Business Risk

Business Risk: risk that is inherent in the operation of a particular organization, including the possibility of loss, no loss, or gain.

There are vast amounts of different types of insurance that are necessary to cover different risks throughout your life.  If you were to start a business you would have a substantial amount of business risk related to the operation of the organization including the possibility that you may or may not make a profit or loss.

Obviously, you can’t purchase insurance just for the sole purpose of guaranteeing a profit for your business, but you can protect yourself against unforeseen hardships.  For instance, your business is a grocery store and an employee slips and falls due to a wet floor.  If it is proven that your employees did everything possible to provide a safe environment then your risk in that situation could be covered by your business insurance.