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