1. Business Risk Management What is “business risk management” and How does it differ from personal risk management?

2. What is “business risk management?”  Business risk management refers to risks incurred by a company and the steps taken to avoid and/or reduce them.

3. Business Risk Management  Risk management for small businesses is often overlooked or over-simplified.  A good risk management system is a continuous process of analysis and communication.  Each business will have different types of risks.

4. Business Risk Management  Insurance for illness, disability, damages, losses, injuries, and disasters is only one aspect of risk management.  Businesses need to be prepared for surprises.

5. Business Risk Management  Risk management involves five steps: Identifying risk Measuring it Formulating strategies to limit it Carrying out specific tactics to implement those strategies Continuously monitoring the effort

7. Types of Business Insurance  General Liability Insurance Need? cover legal hassles due to accident, injuries and claims of negligence protect against payments as the result of  bodily injury,  property damage,  medical expenses,  libel, slander the  cost of defending lawsuits

8. Product Liability Insurance  Need? Companies that manufacture, wholesale, distribute, and retail a product may be liable for its safety.  Product liability insurance protects against financial loss as result of a defect product that cause injury or bodily harm.

9.  The amount of insurance you should purchase depends on the products you sell or manufacture. A clothing store would have far less risk than a small appliance store, for example.

10. Professional Liability Insurance  Need? Business owners providing services should consider having professional liability insurance (also known as errors and omissions insurance).  This type of liability coverage protects your business against malpractice, errors, negligence in provision of services to your customers.

11.  Depending on your profession, you may be required by your state government to carry such a policy. For example, physicians are required to purchase malpractice insurance as condition of practicing in certain states.

12. Commercial Property Insurance  Property insurance covers everything related to the loss and damage of company property due to a wide- variety of events such as fire, smoke, wind and hail storms, civil disobedience, and vandalism.

13. What is considered “property?”  The definition of "property" is broad, and includes lost income, business interruption, buildings, computers, company papers and money.

14.  Property insurance policies come in two basic forms:  (1) all-risk policies covering a wide-range of incidents and perils except those noted in the policy; All-risk policies generally covers risk faced by the average small business, while peril-specific policies are usually purchased when there is high risk of peril in a certain area.

15.  (2) peril-specific policies that cover losses from only those perils listed in the policy.  Examples of peril-specific policies include fire, flood, crime, and business interruption insurance.

16. Home-Based Business Insurance  Homeowners' insurance policies do not generally cover home-based business losses.

17. EXAMPLE  Ice skating rink  Personal injury  How might personal injury(ies) occur?  What can we do (management) to prevent the occurrence of personal injury(ies)?  How would we implement these strategies?  How would we continuously monitor the success of our strategies?  How might we avoid the occurrence of personal injuries?