Ch 16 small business protection: risk management and insurance

a contract stipulation that requires a policyholder to carry insurance in an amount equal to a stated minimum percentage of the market value of the property insured

co-insurance

set of rules and procedures that work to limit the opportunity for employee theft or malfeasance

internal control

employees whose experience and skills are critical to the success of a business

key employees

payment for injury or damage that occurs during the use of the business's products

product liability

states of being that are expressly prohibited from suffering discrimination: race, color, religion, sex, national origin, gender, age, or disability

protected class

viruses are malicious programs designed to damage PCs

an antivirus program

covers abnormal losses from credit customers not paying their bills

credit insurance

programs or pieces of equipment called routers which serve as a barrier between your PC and the internet

firewall

provided to employees to provide security for their families

life insurance

most highly desired form of insurance for most employees

medical

programs designed to reports on your keystrokes or data, or give remote control of your PC to others

antispyware programs

the probability that the future state of the business will be less successful than planned, resulting in the lose of value of business assets

business risk

insurance that provides money to owners of a business to buy the shares of any deceased owner from that owner's heirs

buyout insurance

contractual provisions of insurance policies that specify what risks the insurance company is assuming

coverages

an amount of loss that will not be paid by an insurance company

deductible

misappropriation of business property by employees of that business

employee theft

bonds that repay employers for losses caused by dishonest or negligent employees

fidelity bonds (fidelity bonds)

an agreement between two or more entities to pool resources in order to complete project

joint venture

available to protect both you and your employees from specific risk

personnel insurance

laws and governmental rules that limit the freedom of business owners to manage their businesses as they please

regulation of the workplace

an agreement with an insurance or bonding company that will pay a specified amount in the event that the entity bonded fails to comply with specified contractual requirements

surety bonds

laws and regulations that specify the requirements of taxation

tax codes

the amount of an asset for which a company will write an insurance policy

insurable value

contract between two or more parties in which one party agrees, for a fee, to assume the risk of another

insurance

comprise the legal rights to use unique features of products or services that provide competitive advantages

intellectual property rights

protects you in the event that a key employee dies or is disabled and cannot work

key person

type of internal control that separates the physical control of an asset from the person accounting for that asset

separation of duties