BUISENESS MANAGEMENT
INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A type of unemployment insurance providing the business owner short-term income if the business fails
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A type of liability insurance protecting against the abrupt loss ofemployees
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type of property insurance compensating a business for lossof income while repairs are being made to damaged property
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A type of BOP combining unemployment, liability and propertyinsurance
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Detailed explanation-1: -Business interruption: While commercial property pays for actual physical damages or losses, BI covers lost net income due to the closure of the business while repairs are underway. These policies may cover rent or lease payments, relocation costs, employee wages, taxes, and loan payments.
Detailed explanation-2: -Business interruption insurance covers the cost of rental and lease payments while your business isn’t making money. Example: A fire damages an electronics store, making it impossible for the business to serve customers. While the business is closed for renovations, it still needs to make rental payments on the store.
Detailed explanation-3: -Business interruption risk refers to the financial loss a company suffers when its operations are disrupted. This loss includes both observable components, such as reduced sales and increased cost of working, and hidden components, such as loss of future revenue streams due to potential reputational damage.
Detailed explanation-4: -Business interruption insurance is insurance coverage that replaces income lost in the event that business is halted due to direct physical loss or damage, such as might be caused by a fire or a natural disaster.