| A | B |
|---|
| asset | An item of value owned by an individual or firm. |
| business interruption insurance | Insurance that pays for income lost when a covered disaster closes a business |
| diversification | Increasing market penetration by moving into new markets to broaden consumer base or increasing product line to sell a variety of products. |
| employee confidentiality agreement | An agreement not to disclose sensitive information about a business such as trade secrets and client information. |
| fire insurance | Insurance protecting a business or individual from the costs of damage by fire. |
| general liability insurance | Insurance protecting a business from lawsuits. |
| insurance | A principal way of transferring risk to a third party. It is an agreement which protects a business from the possibility of future financial harm in exchange for regular payments. |
| Malpractice | Misconduct by a professional which is judged by comparing the professional’s action or inaction against a “reasonable person” standard. |
| Mitigate | To lessen or minimize the severity of one's losses or damage. |
| Premiums | A fixed periodic payment made to insurance companies in exchange for insurance. |
| product liability insurance | Insurance protecting a company from lawsuits if someone is injured by its merchandise. |
| product testing | Performed to determine the safety and functionality of a product. |
| pure risk | A situation where there is a chance of either loss or no loss but no chance of gain; eXAMPLE: either a building will burn down or it won't. This is an insurable event. |
| quality assurance | Steps a manufacturer takes to ensure that its products are safe and meet the company’s standards. |
| risk | The potential for a negative event. |
| risk mitigation | To reduce the risk to an asset by either reducing the probability of a problem or limiting the effects of a problem once it occurs. |
| speculative risk | A situation where the possibility of either a financial loss or a financial gain exists. Example: purchase of shares. This is not an insurable event. |
| strategic partnership | Two businesses share resources instead of developing them internally. Sometimes referred to as a joint venture. |
| surety bond | A monetary guarantee that an obligation will be fulfilled. If the obligation is not fulfilled the offended party gets to recoup its losses. |
| theft insurance | Insurance to protect a business from internal (employee) or external (competition or strangers) stealing. |
| vehicle insurance | Insurance that may cover expenses associated with an auto accident. (Examples: injury or property damage) |
| workers’ compensation | Monetary reparation for an employee injured while working - often mandated by law. Such reimbursement pays a percentage of lost wages and the employee’s medical care for that injury. |
| workers’ compensation insurance | Insurance protecting a business from claims by employees for on-the-job injuries. |
