Exam 23: Managing Risk in the Small Business

Which risk type directly affects the employee but indirectly impacts the business?

Mistakes that an employee makes in assembling a product for a customer could be a(n):

Match the term with its definition.Some terms may not be used a.Actual cash value b.Aggregate stop loss limit c.Direct loss d.Disability buyout insurance e.Disability insurance f.Indirect loss g.Loss avoidance h.Loss prevention i.Loss reduction j.Replacement value of property k.Specific stop loss limit -The cost of replacing personal property and rebuilding real property at today's prices.

Match the term with its definition.Some terms may not be used a.Business interruption insurance b.Business owner's policy c.Combined public liability insurance d.Disability insurance e.Funds transfer fraud f.Key-person life insurance g.Package policy h.Personnel risks i.Proximate cause j.Reasonable standard k.Employers liability insurance -Coverage that provides benefits to employees injured at work.

Review and evaluate is an important step in the risk management process because:

Bob and Tom are partners in a business.Discuss the types of insurance the business should carry if something should happen to one of the partners.

Small businesses are particularly vulnerable to employee fraud because of weak financial controls.

Patrick has a great idea for a new business venture.Even after conducting research he is not certain whether he can make a go of it.Patrick is concerned about:

To evaluate an insurance programme, which question should be answered first?

Since Melissa is starting a daycare centre in her home, what business risks should be insured? How can an insurance agent assist in the insurance evaluation process?

A property insurance policy is used by a business owner to insure buildings and personal property owned but not leased by the business.

Driving as safely as possible is an example of loss:

Typically, insurance premiums to cover employee lawsuits start at:

Match the term with its definition.Some terms may not be used a.Business interruption insurance b.Business owner's policy c.Combined public liability insurance d.Disability insurance e.Funds transfer fraud f.Key-person life insurance g.Package policy h.Personnel risks i.Proximate cause j.Reasonable standard k.Employers liability insurance -A business version of a homeowner's policy designed to meet the property and general liability insurance needs of some small business owners.

Match the term with its definition.Some terms may not be used a.All-risk approach b.Business risk c.Compensatory damages d.Disability insurance e.Economic damages f.Health maintenance organization g.Market risk h.Named-peril approach i.Peril j.Preferred provider network k.Pure risk -A managed-care network providing health insurance that is more expensive but offers a broader choice of medical providers.

Which insurance coverage is required by law in most states?

Business interruption insurance pays for lost income following the interruption of business operations.

Assume a contract exists between Mr Jones, a college professor, and his student, M.Smith.Jones provides a syllabus, instruction, tutoring and assessments of learning but Smith fails the class.Which of the following elements is absent in this case?

A customer's slip and fall injury would be covered by:

Business interruption insurance is: