| A | B |
|---|
| asset | An item of value owned by an individual or firm. |
| business interruption insurance | Insurance that pays for income lost when a business is closed because of a covered disaster. |
| diversification | Increasing market penetration by moving into new markets and broadening the consumer base or increasing the product line to sell a variety of products. |
| employee confidentiality agreement | An agreement, signed by an employee, not to disclose sensitive information about a business. Confidentiality agreements often cover trade secrets and client information. They allow the firm to sue an ex-employee in court. |
| 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 (the insurance company). It is an agreement (or legal contract) in which a business or individual is protected from the possibility of future financial harm in exchange for regular payments (a premium). |
| malpractice | Misconduct by a professional, such as a doctor, lawyer, or accountant. It is judged by comparing the professional’s action or inaction against a “reasonable person” standard. In the case of malpractice, the reasonable person will be a broad group of professionals in that same area of expertise. |
| 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 product. |
| product testing | Testing 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; for example, either a building will burn down or it won't. Only pure risks are insurable, because otherwise insurance is akin to gambling. |
| 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 reducing the probability of a problem and limiting the effects of a problem once it occurs. Risk mitigation is sometimes called risk management. |
| speculative risk | A situation where the possibility of either a financial loss or a financial gain exists, as in purchase of shares. Unlike pure risks, speculative risks are usually not insurable. |
| strategic partnership | A partnership between two businesses whereby the 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 via the bond. |
| theft insurance | Insurance protecting a business or individual from theft. |
| vehicle insurance | Insurance that protects a vehicle. It often covers both the vehicle itself and any other expenses associated with an accident, such as injury to another person or damage to that person’s property. |
| workers’ compensation | Monetary compensation for an employee injured while working, often mandated by law. Such compensation pays a percentage of lost wages and the employee’s medical care for that injury. |
| workers’ compensation insurance | Insurance protecting a business from workers’ compensation claims. |
