Ch 17: Small Business Protection: Risk Management and Insurance
joint venture
agreement between two or more entities to pool resources in order to complete a project
protected classes
prohibited from suffering discrimination
co-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.
surety bonds
an agreement with an insurance or bonding company that will pay a specified amount in the event that the entity fails to comply with specified contractual requirements
deductible
an amount of loss that will not be paid by an insurance company
fidelity bonds
bonds that repay employers for losses caused by dishonest or negligent employees. This covers loss from employee fraud, theft, forgery, and embezzlement
credit insurance
covers abnormal losses from credit customers not paying their bills
buyout insurance
insurance that provides money to owners of a business to buy the shares of any deceased owner from that owner's heirs
business risk
level of probability that the future state of the business will be less successful than planned
personnel insurance
protects both you and your employees from specific risks. Life, disability, medical, etc