Any business activity involves certain risks. And in order for an entrepreneur to be able to insure his finances, as well as liability to third parties, an institute for insurance of entrepreneurial risks has been developed.

Definition of entrepreneurial activity

This concept is understood as any initiative activity of a person in order to obtain financial resources.

This activity must be carried out within the framework of the law, respectively, carried out on behalf of a registered individual entrepreneur or legal entity.

The main characteristic differences of entrepreneurship from other types of activity are:

• risky nature;
• registered activity;
• aimed at making a profit systematically;
• initiative character;
• independence of a capable citizen;
• activity is aimed at the production of goods, their sale or the provision of services.

Both individual citizens of Russia and foreign persons, as well as any associations of people, can participate in such activities.

Concepts and functions, classification of risks in business

The very concept of insurance of this type of activity means the conclusion of an insurance contract that in the event of an insured event, the insurer must compensate for losses in the amount of the sum insured or part of it.

When insuring an entrepreneurial type of activity, insured events are understood as certain impacts on the monetary, material, and other financial resources of the entrepreneur. They also include the results of the company's activities. As a result of this impact, the entrepreneur incurs additional costs and incurs losses.

Business risk management and essential terms of the insurance contract

During the conclusion of an insurance contract, the insurer and the policyholder determine and indicate in the contract the essential conditions and specific risks under which the entrepreneur may incur losses or additional costs.

One of these risks is entrepreneurial.

It is understood as the possible occurrence of certain events that will affect the property that is listed on the balance sheet of this legal entity or its production, technological processes. And as a result of this impact, the business owner will incur losses or additional costs.

In this case, insurance is necessary in order to compensate the entrepreneur for losses incurred by him, lost profits, additional expenses in the event of the occurrence of conditioned events.

financial risk

Financial risk management. Financial risk differs from entrepreneurial risk in that negative impacts are exerted on the very processes of the entrepreneur's activity. These processes may be related to:

• receipt of funds;
• spending them for certain purposes;
• accumulation of finance.

As a result of these influences, the entrepreneur suffers certain losses, receives less profit or is forced to bear additional costs.

All insurance companies are registered as legal entities. Individual entrepreneurial activity in the field of insurance is not provided.

Insured events

On the example of the practice of Russian insurance companies and entrepreneurs, the following possible insured events can be distinguished, which are often insured in this area:

• bankruptcy of an entrepreneur or legal entity;
• Unexpected expenses;
• improper performance or refusal to perform its obligations to the insured entrepreneur by a third party who should have been a creditor;
• decrease in the volume of production, or its complete stop due to reasons stipulated by the insurance contract;
• reduction in the volume of work or services provided, as well as a complete stop in their provision, associated with certain reasons in the contract;
• job loss for individuals;
• legal costs that the insured business owner has to pay.

Until recently, the bankruptcy procedure was applied only to legal entities. But this year, individual entrepreneurs and individuals can recognize themselves in court.

This concept means the recognition in court of the financial inability of a person to answer for his obligations to third parties. This procedure is carried out in order to protect the financial interests of the debtor's creditors, as well as to protect the debtor from the actions of creditors.

This is an incomplete list of possible insured events that are known in practice. The insurer and the policyholder have the right to establish any relevant insured events, the occurrence of which may result in consequences leading to losses and additional costs in business.

In connection with the entry into force of the new Civil Code, in which financial insurance is replaced by property insurance, the following classification of risks can be insured under a property insurance contract:

1. Liability for obligations to third parties. This liability may arise as a result of the validity of concluded agreements, as well as in case of causing harm to third parties. In this case, material harm, harm to health and a threat to life are implied.
2. The risk of loss or non-receipt of certain income that an entrepreneur may incur or not receive as a result of a violation by third parties of their obligations, as well as when other factors influence entrepreneurial activity.
3. The risk of loss or damage to the entrepreneur's property and financial values.

Read about third party liability insurance.

This insurance provides protection for business owners from losses, but also compensates them for lost profits.

Business insurance items

Insurance items are understood as significant tangible and intangible values ​​of the business, on which the successful operation of the entire organization depends, and most importantly, making a profit.

In practice, the following items that are subject to insurance are distinguished:

1. All property of the company that is listed on its balance sheet or owned by an individual entrepreneur, as well as leased and leased property values.
2. The efficiency of all components and assemblies of production facilities, as well as possible losses in case of their inoperability.
3. Innovative developments, projects. They also include their results.
4. Investments in other projects, investments in shares, securities.
5. Decrease in sales volume, volume of rendered services and performed works.
6. Additional forced expenses in entrepreneurial activity.
7. Losses from the organization's own activities.
8. Civil liability of an entrepreneur to creditors, investors, shareholders and other third parties.
9. Civil liability of the business owner under supply contracts and other contracts related to the provision of services, performance of work, settlements with suppliers, manufacturers, etc.
10. for causing them harm to health at work and as a result of other events related to entrepreneurial activity.

The main objects in this type of insurance are interests associated with property values ​​(material, financial, monetary). It is they who are exposed to factors that negatively affect them and lead to losses or the demand for additional financial resources.

You can familiarize yourself with the property insurance contract.

Kinds

In addition to this type of insurance, there are separate types of insurance that may overlap with some business insurance items. These insurance contracts include:

• cargo insurance;
• vehicle insurance;
• some other types.

Therefore, business risk insurance may not include these insurance items. But they will be insured:

• manufactured goods;
• services rendered;
• completed work;
• reserves of fuel and energy resources;
• intangible values;
• equipment;
• securities;
• cash.

Read about real estate insurance for legal entities.

Based on this, the following types of business risks that are insured can be distinguished:

• liability insurance to creditors;
• losses incurred in the course of sale;
• insurance of deposits, contributions and funds in the company's accounts.

When concluding an insurance contract, an entrepreneur must foresee all possible risks for him and secure his business to the maximum.

Financial results

These results mean the results summed up for a specific period in financial terms. That is, the income received from the activities of the enterprise is calculated. And if it is lower than planned, the factors that influenced it begin to emerge.

The insurance company will compensate for the difference between the planned financial results and those actually received, if the reason for this is the insurance situations specified in the insurance contract.

Video

An entrepreneur in his activities can use 4 ways to manage risk:

Risk avoidance;

retention;

Broadcast;

Reducing the degree of risk.

Risk avoidance refers to the simple avoidance of risk-related activities. However, risk avoidance is sometimes directly related to the rejection of profit.

Retention of risk implies leaving the risk to the investor, that is, to his responsibility.

The transfer of risk means that the investor transfers the responsibility to some person, for example, an insurance company.

Reducing the degree of risk - reducing the likelihood and amount of losses. To reduce the degree of risk, various methods are used, of which the most common are: diversification, the acquisition of additional information about the choice and results, limiting, self-insurance, etc.

One of the most common risk mitigation methods is risk transfer. This transfer of risk most often occurs through insurance.

Some of the business risks considered in the first chapter are subject to insurance under the entrepreneur's liability insurance (civil liability insurance of the manufacturer of goods, liability insurance for non-fulfillment of obligations of the bond issuer, civil liability insurance of organizations that create increased danger to others), part through personal insurance (accident insurance and illness of the borrower), partly by property insurance (property insurance of legal entities, insurance of valuables of cash desks and ATMs). In the same paper, the types of business risk insurance identified in Article 819 of the Civil Code of the Republic of Belarus as an element of property insurance will be considered. These are the risks of losses from entrepreneurial activity arising due to circumstances:

Non-fulfillment (improper fulfillment) of their obligations by counterparties of the entrepreneur;

Changes in the conditions of this activity due to circumstances beyond the control of the entrepreneur.

Entrepreneurial risk insurance is understood as insurance by the entrepreneur of the risks of his losses and failure to receive the expected income from the insured business activity due to breach of obligations by the counterparties of the entrepreneur or changes in the conditions of this activity due to circumstances beyond the control of the entrepreneur. The object of this insurance is the property interests of the insured associated with the implementation of commercial activities.

Business risk insurance is regulated by Article 822 of the Civil Code of the Republic of Belarus. Under a business risk insurance contract, business risk can only be insured by the insured himself and only in his favor. The business risk insurance contract of a person who is not a policyholder is void. A business risk insurance contract in favor of a person who is not the policyholder is considered to be concluded in favor of the policyholder.

Business risk insurance provides for the obligations of the insurer to compensate for loss of income or additional expenses of the insured caused by such events as a stop or reduction in the volume of production activities as a result of specified reasons, bankruptcy, non-performance or improper performance of contractual obligations by the counterparty of the insured, incurred by the insured in court or any unforeseen expenses.

Under a business risk insurance contract, the insurance company is obliged, for the fee (insurance premium) stipulated by the insurance contract, upon the occurrence of an insured event provided for in the insurance contract, to compensate the insured (company / entrepreneur) for the losses caused as a result of this event by paying insurance compensation within the limits of the sum insured determined by the insurance contract .

The sum insured under the contract is most often set within the limits of the insured's investments in the insured activity with its increase in some cases by the expected profit from this activity agreed between the parties to the contract. This amount limits the amount of insurance compensation in the event of an insured event. At the same time, the terms of the insurance contract often provide for the establishment of a franchise. The amount of the insurance premium is usually set as a percentage of the value of the insured property.

Entrepreneurial activity is a continuous process of increasing the property invested in the business. Disruption of continuity may be caused by the loss of means of labor or by some events in the sphere of economic relations. Thus, destruction or damage to property due to a natural disaster, accident, fire, theft, etc. leads not only to direct financial losses reimbursed under property insurance contracts, but also to indirect losses associated with the stoppage of production, which are covered under business risk insurance contracts. At the same time, a decrease in entrepreneurial income may be the result of non-fulfillment by third parties of their commercial or financial obligations for various reasons. By carrying out insurance against this group of risks, the insurer assumes the functions of a guarantor of the fulfillment of such obligations, which is in many ways similar to liability insurance, only in this case the insured is not the culprit of the harm caused, but the person who may incur losses due to the failure to fulfill the obligations of his counterparty .

The emergence of types of business risk insurance was, on the one hand, a consequence of the expansion of insurance of ordinary property risks, and on the other hand, the result of the development of a new area of ​​activity for insurers - guarantees and guarantees. Thus, business risk insurance combines some features of property insurance and liability insurance. The amount of liability of the insurer, depending on various conditions, can vary widely: from natural disasters to a set of socio-political factors.

A change in the conditions of activity should be random for the entrepreneur, i.e. he must be conscientiously unaware of this change.

The entrepreneur must also be in good faith unaware of a breach of obligation by his counterparty. For example, the entrepreneurial risk of the seller cannot be insured when selling goods to a person whose solvency is doubtful, since the seller almost always has a real opportunity to obtain information about the solvency of the buyer or, in the absence of such information, not to conclude a sales contract. If there is an insurance policy, the policyholder's interest in the successful outcome of the transaction disappears - in any case, he will receive payment either from the counterparty or as insurance compensation from the insurer. In order to determine the solvency of the counterparty of the insured, the insurer requires the presentation of financial documents of the counterparty of the insured, and determines the possibility of insurance.

The specifics of insurance determines a number of requirements for the procedure for concluding contracts. In particular, the policyholder must present certificates of registration, licenses or patents for the activity subject to insurance, and other necessary documents. In his statement of desire to conclude an agreement, he must give detailed information about the entrepreneurial activity, the conditions for its implementation, expected income and expenses, concluded contracts, his counterparties and other circumstances related to the degree of risk. The main condition for the effectiveness of insurance is a differentiated approach to each client.

The transfer to the insurer of the right to claim that the insured has against the person responsible for the losses indemnified as a result of insurance is called subrogation (Article 855 of the Civil Code of the Republic of Belarus). The right of the insured passes to the insurer by virtue of the fact of payment of insurance compensation and within the limits of the amount paid. The condition of the contract, which excludes the transfer to the insurer of the right to claim against the person who intentionally caused the loss, is void.

If the policyholder (beneficiary) has waived his right to claim against the person responsible for the losses indemnified by the insurer, or the exercise of this right has become impossible due to the fault of the policyholder (beneficiary), the insurer shall be released from payment of insurance compensation in full or in the relevant part and shall have the right to demand the return of the overpaid the amount of insurance compensation.

As a rule, losses are estimated at the time of their occurrence (with the onset of an insured event). The insurance company is liable only for those risks that are clearly defined in the contract. The insurer usually provides the management of the enterprise with a list of insured events and gives the opportunity to choose from them only those necessary for the enterprise.

An insured event for business risk insurance in the event of non-performance (improper performance) of contractual obligations by the counterparty is considered to have taken place when negative consequences for the insured occurred after the expiration of the contract and the counterparty of the insured did not fulfill (improperly performed) its contractual obligations or, if the contract involved performance obligations in parts, the delay in the next performance was more than the agreed period.

The peculiarity of the type of insurance under consideration is that the insurance company pays insurance compensation to the insured mainly at the end of the insurance contract, when the final results of the contract concluded between the insured and the counterparty are revealed. For other types of insurance, the need to compensate for losses may arise at any time during the validity of the insurance contract. In this regard, the resolution of the Ministry of Finance of the Republic of Belarus dated December 17, 2007 No. 188 “On the procedure and conditions for the formation of insurance reserves of insurance organizations” stipulates that the amount of the reserve of unearned premium under voluntary business risk insurance contracts, the terms of which provide for the fulfillment of obligations not earlier than the end of the contract, is determined for each insurance contract in the amount of the basic insurance premium until the end of its validity or in the amount of the calculated reserve using the “pro rata temporis” or “one twenty-fourth” method.

When business risk insurance enters the international level, another insured risk appears - political.

A distinctive feature of export credit insurance is the establishment of a credit limit. The credit limit represents the maximum amount of losses resulting from the debt of a particular counterparty under an export contract, which the insurer can compensate. The credit limit for the counterparty is set by the insurer at the request of the insured based on an analysis of the credit file, credit history and other available financial documents, usually for the duration of the insurance contract.

Features has a procedure for establishing the sum insured under the insurance contract. It is determined by agreement of the parties, but within the credit limit to the counterparty. Insurance rates are calculated by the insurer depending on the degree of risk under the insurance contract on the basis of basic insurance rates and adjustment factors approved by the insurance supervisory authority.

The presence of specific risks in export insurance (political and commercial risks that may occur in the importer's country) determines the need for the creation of export agencies and the participation of the state in export insurance. In addition to export credit agencies, private insurance companies can also operate on the market. Their activity, as a rule, is limited by short settlement terms and the requirement to insure the full turnover of foreign trade operations.

The construction of export promotion systems and the functioning of export credit agencies can be built according to different schemes, but in any scheme, reliance on the budget is a common feature of the activities of export credit agencies. At present, the facility for guaranteeing export credit insurance operations, together with spending on other export promotion instruments (for example, interest rate compensation), is one of the main elements of the state export support system in all countries. Significant resources are allocated annually for these purposes.

The state-supported export credit insurance system is designed to save enterprises from their unusual functions of credit management and debt collection in the event of insured events through subrogation.

The Republic of Belarus also has a state-supported export risk insurance system. The legal framework is Decree 534, in which the Eximgarant of Belarus has the exclusive right not to carry out this type of insurance.

The insurance obligations of insurers under the insurance of export contracts are very significant. In this regard, Eximgarant, as well as export credit insurers in foreign countries, has additional government guarantees in case of a lack of its own assets. A prerequisite for attracting public funds is their return after the exercise of the right of subrogation. Foreign insurers widely use the right of subrogation, including through international unions of creditors (Paris and London clubs).

When concluding an export risk insurance contract with state support, a prerequisite is the establishment of a waiting period and the insured's own participation in covering possible losses.

Waiting period - the period (in calendar days) after the expiration of the period specified in the contract for the fulfillment by the counterparty of the insured of its monetary obligations, after which the insurer has an obligation to compensate for damage.

Thus, entrepreneurial risks are insured through liability insurance, personal insurance and property insurance, which single out risks arising from non-fulfillment (improper fulfillment) of their obligations by counterparties and risks caused by changes in business conditions due to circumstances beyond the control of the entrepreneur.

The sum insured under the contract is most often set within the limits of the insured's investments in the insured activity with its increase in some cases by the expected profit from this activity agreed between the parties to the contract. At the same time, the terms of the insurance contract often provide for the establishment of a franchise. The amount of the insurance premium is usually set as a percentage of the value of the insured property. In most cases, the insurance company can return the paid insurance indemnity in the exercise of the right of subrogation. Insured events are selected by the policyholder independently from the list provided by the insurer.

The presence of specific risks in export insurance implies the participation of the state in export insurance, which is also used in the Republic of Belarus. When concluding an export risk insurance contract with state support, a prerequisite is the establishment of a waiting period and the insured's own participation in covering possible losses.

In order to live more calmly, and there was always hope for a successful outcome, a useful insurance system was invented that protects against material losses. One of the subspecies of this system is risk insurance in business activities, which is increasingly in demand these days.

Features of business risk insurance

This category belongs to the large-scale section of industrial insurance, but has a narrow focus - the protection of assets and income in the process of doing business. Insurance allows you to minimize losses and make a profit even in the most unfavorable scenario.

Kinds

Entrepreneurship is a vast, versatile field of activity, including many areas with their own specifics, and insurance in this area is divided into several types:

• Production risk insurance.
• Insurance.
• Account insurance.
• Insurance against losses in the sale of manufactured products or services.
• Credit insurance against default.
• Insurance of managerial risks.
• Insurance of innovative risks.
• Commercial risk insurance.
• Technical risk insurance.
• Environmental risk insurance.

These types of insurance cover possible damage, the probability of which an entrepreneur will receive in the course of work is quite high.

Treaty

A written contract is concluded between the entrepreneur (insured) and the insurance company (insurer), according to which the insurer assumes part of the responsibility for the risk and undertakes, in the event of an insured event, to pay the losses of the insured in the agreed amount. Such an agreement is concluded by the insured in his favor, a third party cannot become a beneficiary. To conclude a contract, the insured must be a legalized entrepreneur with all related documents, and the insurer must have a special license.

The specific content and structure of the contract depends on the chosen organization, but a description of the conditions of interaction is obligatory.

All contracts have a standard basis: the object of insurance, the list of insured events, the amount of insurance premium, the amount and terms of payment of compensation, additions.

The amount of the insurance premium depends on the amount of compensation. It is repaid by the insured once, at the conclusion of the contract or in installments. The term of the standard contract is 1 year, but to a greater extent it depends on the type of insured risk. The contract terminates upon expiration of the working period or due to other circumstances:

• When the insurer fulfills its obligations.
• Upon termination of the activities of the insurer or the insured.
• By mutual agreement.
• At the initiative of one of the parties.

The contract comes into force after signing, the insured is given a copy of the contract, an insurance policy or other documentary evidence of the transaction.

Objects and cases

The objects of insurance of entrepreneurial risks are property interests associated with assets and profit from activities, subject to the occurrence of insured events that cause damage to entrepreneurs and require third-party financing to cover it. In fact, the object of business insurance is precisely the losses received by the insured and compensated by the insurer.

Insured events are events specified in the list of the contract and occurred during the period of its validity as a result of which the insured incurs losses. Insured events arising from commercial risks are divided into two main categories:

1. Failure of the production process as a result of external factors: natural disasters, fires, equipment breakdowns, disruption in the supply of raw materials and similar causes.
2. Changes in the market situation: a sharp drop in the exchange rate compared to the forecast, failure to fulfill the terms of the contract by partners, a drop in demand for products or services due to a deterioration in the purchasing power of consumers, etc.

Actions in case of insured events

In the event of an insured event, the entrepreneur immediately informs his insurance company about all the circumstances of the loss and their extent. The method of notification is prescribed in the contract.

Payouts

The fulfillment by an insurance organization of obligations is the payment of monetary compensation in the event of an insured event. The amount of payment is approved by the parties at the conclusion of the contract, it depends on the type of insurance and the extent of the alleged damage, but does not exceed the insured value (the maximum amount of possible losses). To receive funds, the entrepreneur applies to the insurer with an agreement (policy), an application, documentary evidence of the fact of an insured event, and a calculation of the losses incurred. Payment is made after the insurer draws up the act, the exact dates should be specified when drawing up the contract.

Insurance. Cribs Albova Tatyana Nikolaevna

113. General principles of business risk insurance

Business risk insurance- this is insurance of the risks of losses, additional expenses and non-receipt of expected income from business activities due to breach of obligations by counterparties and (or) changes in the conditions of this activity due to circumstances beyond the control of the entrepreneur.

The object of insurance is the material interests of the insured associated with the implementation of entrepreneurial activities for profit.

The sum insured under business risk insurance contracts is usually set within the limits of financial investments in entrepreneurial activity, and the tariffs depend on the type of this activity and can reach 15–20% of the sum insured.

Types of business risk insurance:

1) insurance of investments and financial guarantees;

2) property insurance and personal insurance of personnel, civil liability insurance, insurance of losses from interruptions in production;

3) liability insurance under contracts, including for low-quality products, risks of non-payment on export, commodity credits.

In addition, the risks of liability of the enterprise's management to its owners associated with possible mistakes in making decisions that caused damage to the owners are insured.

In accordance with Art. 933 of the Civil Code of the Russian Federation, under a business risk insurance contract, only the business risk of the insured himself and only in his favor can be insured.

At present, the complex insurance protection of the enterprise has been developed, including insurance protection of the social sphere (personal insurance), insurance protection of property and financial risks (property insurance), insurance protection of liability (liability insurance). An integrated approach allows minimizing tariff rates for each type of insurance. In this case, the insurer carries out systematic insurance protection against various risks of one enterprise, in connection with which the costs of insurance are reduced.