Insuring your business - Coursework Example

Insuring your Business of Affiliation: Insuring your Business It is necessary for every business that has asserts such as employees, office space, and equipment to have such asserts insured against any risks. Starting a business itself is a risk, and, therefore, it is appropriate that the business is protected from any associated risks as a means of stabilizing the business. Risk management is an important aspect in the business sector considering the numerous uncertainties the business is most likely to face.

Based on such aspects, I have acquired a comprehensive insurance cover for my cosmetics business, considering the numerous risks the business is exposed to within the industry. Ideally, the common risks associated with cosmetics businesses include fire and health risks, especially for employees handling the cosmetics who are exposed to the different chemicals used during the manufacture of the cosmetics. Equally, the chemicals used are highly reactive and could easily explode if exposed to fire.

The company has not had any legal claims previously; however, there was once an instance of contract breach in which the supplier failed to deliver goods in time and the company suffered a significant loss. Because the company had taken a comprehensive cover, the insurance claim tool cover of all the costs as well as the fees paid to the attorney. My company is unique, as it has established an expanded customer base and, as such, deals in timely delivery lest the customers fail to get their products in time.

As the operating manager, in order to identify the risks associated with the business, I have characterized all occurrences that seem to pose threats and ascertain the likelihood of such occurrences. With availing enough resources for every operating department, the company saves a lot from reduced expenses as most risks are prevented before occurrence rather than mitigation after their occurrence.