Ch 24 Vocabulary

business interruption insurance

Business interruption insurance is a type of insurance that covers the loss of income that a business suffers after a disaster. The income loss covered may be due to disaster-related closing of the business facility or due to the rebuilding process after

buying in bulk

the purchase of large quantities of a particular product or products, typically at a discount.

cash value

The cash value of an insurance contract, also called the cash surrender value or surrender value, is the cash amount offered to the policyowner by the issuing life carrier upon cancellation of the contract. This term is normally used with a life insurance

catastrophic risk

A global catastrophic risk is a hypothetical future event which could damage human well-being on a global scale, even crippling or destroying modern civilization. An event that could cause human extinction or permanently and drastically curtail humanity's

coverage

the extent to which something deals with or applies to something else.

deductible

In an insurance policy, the deductible is the amount paid out of pocket by the policy holder before an insurance provider will pay any expenses. In general usage, the term deductible may be used to describe one of several types of clauses that are used by

ergonomics

ergonomics is the application of psychological and physiological principles to the design of products, processes, and systems.

insurance policy

insurance policy is a contract between the insurer and the insured, known as the policyholder, which determines the claims which the insurer is legally required to pay.

insurance premium

Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss An entity which provides insurance is known as an insurer, insurance company, insurance car

law of large numbers

the law of large numbers is a theorem that describes the result of performing the same experiment a large number of times.

liability insurance

Liability insurance is a part of the general insurance system of risk financing to protect the purchaser from the risks of liabilities imposed by lawsuits and similar claims. It protects the insured in the event he or she is sued for claims that come with

policy

A policy is a deliberate system of principles to guide decisions and achieve rational outcomes. A policy is a statement of intent, and is implemented as a procedure or protocol. Policies are generally adopted by a governance body within an organization.

premium

an amount to be paid for an insurance policy.

procurement

Procurement is the process of finding and agreeing to terms, and acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process.

property insurance

Property insurance provides protection against most risks to property, such as fire, theft and some weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, or boiler insur

purchasing

Purchasing refers to a business or organization attempting to acquire goods or services to accomplish its goals. Although there are several organizations that attempt to set standards in the purchasing process, processes can vary greatly between organizat

purchasing managers

Purchasing Manager is an employee within a company, business or other organization who is responsible at some level for buying or approving the acquisition of goods and services needed by the company. ... seeking reliable vendors or suppliers to provide q

pure risk

Pure risk, also called absolute risk, is a category of threat that is beyond human control and has only one possible outcome if it occurs: loss. Pure risk includes such incidents as natural disasters, fire or untimely death.

quantity discount

A quantity discount is an incentive offered to a buyer that results in a decreased cost per unit of goods or materials when purchased in greater numbers. A quantity discount is often offered by sellers to entice buyers to purchase in larger quantities

replacement cost

The term replacement cost or replacement value refers to the amount that an entity would have to pay to replace an asset at the present time, according to its current worth. In the insurance industry, "replacement cost" or "replacement cost value" is one

rider

a rider is a way for small-business owners to customize their policies to meet their unique needs.

risk reduction

risk reduction is a systematic approach to identifying, assessing and reducing the risks of disaster. It aims to reduce socio-economic vulnerabilities to disaster as well as dealing with the environmental and other hazards that trigger them.

risk transfer

Risk transfer is a risk management and control strategy that involves the contractual shifting of a pure risk from one party to another. One example is the purchase of an insurance policy, by which a specified risk of loss is passed from the policyholder

sourcing

Description Strategic sourcing is an institutional procurement process that continuously improves and re-evaluates the purchasing activities of a company.

speculative risk

Speculative risk is a category of risk that can be taken on voluntarily and will either result in a profit or loss. All speculative risks are undertaken as a result of a conscious choice.

trade discount

a discount on the retail price of something allowed or agreed between traders or to a retailer by a wholesaler.

vendors

a person or company offering something for sale, especially a trader in the street.

volume buying

Volume is the number of shares or contracts traded in a security or an entire market during a given period of time. For every buyer, there is a seller, and each transaction contributes to the count of total volume. ... If only five transactions occur in a

worker's compensation insurance

Workers' compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue their employer for the tort of negligence