Types of Risks
his type of risk involves scenarios where only loss is possible.
Pure Risk
What is the term for the company that agrees to take on certain economic risks?
Insurer
Name one way a business can deal with risks by opting out of the risky activity.
Avoid the risk
What type of insurance covers medical expenses for employees?
Health Insurance
What is one strategy for reducing risk by working with customers from multiple countries?
Diversification
What are risks that can be managed or mitigated, such as through security systems?
Controllable Risks
What do you call the amount of money paid for insurance coverage?
Premium
What is it called when a business finds another company to complete a risky activity?
Transfer the risk
Name the insurance that protects against losses from fire, storms, and theft.
Commercial Property Insurance
This type of right protects the exclusive rights to produce and sell an item internationally.
International Property Rights
Name the two main categories of risks based on their potential for financial loss or gain.
Economic and Non-Economic Risks
Who is the person or business that the insurer assumes the risk for?
Insured
This method of dealing with risks involves purchasing insurance to cover potential losses.
Insure the risk
What type of insurance helps cover ongoing expenses if a business must temporarily shut down?
Business Interruption Insurance
What term describes the illegal use of patents, trademarks, or copyrights?
Counterfeiting
This type of risk cannot be reduced or eliminated, such as a sudden hailstorm.
Uncontrollable Risks
What is the request made by the policyholder for payment for a loss covered by the insurance policy?
Claim
What does it mean to assume a risk in business?
Assume the risk
This type of insurance protects a business from legal claims related to operations, employees, or products.
Liability Insurance
Name one action U.S. companies can take to minimize the risk of doing business in foreign markets.
Diversify markets or hire local people