Aids To Trade That Support Commerce: Insurance: Types Of Insurance Risk (Copy)
Cheat Sheet: 3.2 Types of Insurance Risk
Types of Risks
| Type of Insurance Risk | Explanation | Example |
|---|---|---|
| Consequential Loss | Covers loss of profits or business interruption after an insured event | Factory fire halts production, insurance covers lost income |
| Employer’s Liability | Protects businesses if employees are injured or fall ill at work | Worker injured on construction site |
| Fire | Covers damage caused by fire to property, stock, or equipment | Shop destroyed by fire |
| Motor | Covers accidents, theft, or damage involving vehicles | Car crash insurance claim |
| Premises | Insurance for buildings, contents, and fittings | Office insured against flood damage |
| Public Liability | Protects against claims by the public for injury/damage caused by the business | Customer slips in supermarket |
| Theft | Covers stolen goods, cash, or property | Warehouse burglary |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
Quick View: Business vs Individual Risks
| For Businesses | For Individuals |
|---|---|
| Employer’s liability, Public liability, Premises, Consequential loss | Motor, Fire, Theft |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
Summary
| Key Idea |
|---|
| Insurance risks cover loss of income, employee safety, property damage, accidents, theft, and liabilities. They protect both businesses and individuals from major financial loss. |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course