Business Risk
What Does Business Risk Mean?
Business risk refers to the possibility that a company may fail to achieve its expected profits and could instead earn significantly less or even incur a loss. In the context of insurance, businesses can purchase various types of commercial insurance to mitigate these risks and protect against potential financial setbacks.
Insuranceopedia Explains Business Risk
Various factors can contribute to the long-term success or failure of a business, such as sales figures, competition, interruptions, the broader economy, and other elements that can impact profits. Commercial insurance can help mitigate business risks. For example, business interruption insurance can protect against losses if operations are disrupted due to unforeseen events. Without this coverage, such interruptions could significantly reduce a business’s profits.
