What does Business Risk mean? Read on to discover the definition & meaning of the term Business Risk - to help you better understand the language used in insurance policies.
A risk of loss so closely tied to an insured's way of doing business that it is considered not to be an appropriate subject of insurance coverage; such risks are typically addressed as overhead (i.e., the cost of the loss is included in the price of the business's products or services) or as a subject for loss control. The cost of replacing a defective product or redoing defective work is a classic "business risk" and therefore is excluded from most liability policies.
We hope the you have a better understanding of the meaning of Business Risk.