Entrepreneurial Risk Insurance Contract
Entrepreneurial risk insurance (English business risks insurance) is a sub-sector of property insurance that provides for reimbursement to an entrepreneur of losses incurred or not received expected income from the insured entrepreneurial activity in case of violation of obligations by its counterparties or changes in the conditions of this activity for non depending on his circumstances.
Under the terms of business risk insurance contracts, the insurer assumes the obligation to make insurance payments to policyholders in the amount of full or partial compensation for their lost income or additional expenses incurred due to events such as:
- suspension or reduction of production or other activities as a result of agreed reasons;
- bankruptcy of counterparties of the insured;
- non-performance or improper performance of contractual obligations by its counterparties, who are creditors of the transaction;
- adoption of normative acts or other actions of authorities that worsen the position of the insured;
- insurer's participation in litigation, etc.
The objects of insurance of entrepreneurial risks are the property interests of policyholders associated with their commercial activities