Corporate insurance provides businesses with protection against unforeseen circumstances to mitigate risk. Browse Investopedia’s expert-written library to learn more.

Frequently Asked Questions
  • What are some factors that can impact the current account?

    The biggest determinant of whether the current account is in a surplus or deficit is a country’s trade balance. During a strong economic expansion, import volumes typically surge and, if exports are unable to grow at the same rate, the current account will be in deficit. Conversely, during a recession, the current account will show a surplus if imports decline and exports increase to stronger economies. Exchange rates are another variable that can impact the current account.

  • How does a blanket honesty bond protect employers?

    Blanket honesty bonds, also known as commercial blanket bonds, protect employers from losses due to dishonest acts of employees. That makes it a type of employee dishonesty bond. The bond’s main benefit is that it prevents small companies from going bankrupt due to a single employee's dishonesty.

  • How can a business protect its income if it is denied access to an insured property?

    A business can be forced to close in the wake of a natural disaster or other life-threatening event. Property insurance often covers lost income while a business is closed due to property damage, but doesn't always contain provisions that protect a business that is unable to reopen after an evacuation. A civil authority clause in an insurance policy outlines whether or not lost income will be reimbursed when a government entity denies access to covered property.

  • Does crisis management coverage address more than reputation management?

    As well as PR incidents—the arrest of a prominent board member—and international threats—customer data breaches or computer network invasions—crisis management coverage is also used to cover expenses related to restoring confidence in the security of the insured's computer system in the event of a cybersecurity or data breach. It also covers reputational threats such as product contamination or recall, terrorism and political violence, natural disasters, workplace violence, and adverse media exposure.

  • What properties are covered by a business owner policy?

    Properties covered by a business owner policy, or BOP, typically include buildings that are owned or rented; additions or additions in progress; and outdoor fixtures. The policy will also cover any business-owned items or any items owned by a third party but kept temporarily in the care, custody or control of the business or business owner. The business property must usually be stored or kept in qualifying proximity of business premises (such as within 100 feet of the premises).

  • How are valuation reserves calculated?

    Valuation reserves are calculated using an asset valuation reserve and an interest maintenance reserve to separate valuations in equity versus interest gains and losses. These reserves are mandatory under state law to protect against the natural fluctuations in the value of investments.

Key Terms

Explore Corporate Insurance

Adjusted Premium
Adjusted Premium
Business Net Retention
Business Net Retention
College Construction Loan Insurance Association (CCLIA)
College Construction Loan Insurance Association (CCLIA)
Maximum Foreseeable Loss
Maximum Foreseeable Loss (MFL)
Cost and Freight (CFR) vs. Cost, Insurance, and Freight (CIF)
Understanding CFR vs. CIF
Cooperation Clause
Cooperation Clause
Applied Overhead
Applied Overhead
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Commercial Property Insurance: What it is, How it Works, Examples
Payable-Through-Draft (PTD)
The History of Insurance
Chartered Insurance Professional (CIP)
Guaranteed Renewable Policy: Overview and Examples
Underwriting Risk
What Is Underwriting Risk in Insurance and Securities?
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Insurance Risk Class
Insurance Risk Class Definition and Associated Premium Costs
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Cash Value Accumulation Test (CVAT)
The History of Insurance in America
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Claims Adjuster: Definition, Job Duties, How To Become One
Hammer Clause
Lost Policy Release (LPR): What it is, How it Works
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State Guaranty Fund
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File-and-Use Rating Laws
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Global Recovery Rate
Types of Insurance Companies
A Brief Overview of the Insurance Sector
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Catastrophe Loss Index
Catastrophe Loss Index (CLI)
National Association of Insurance Commissioners (NAIC)
National Association of Insurance Commissioners (NAIC) Defined
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Unfair Claims Practice: What it is, How it Works, Examples
Bundle Your Insurance for Big Savings
Successive Periods
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Allied Lines
National Association of Insurance and Financial Advisors
National Association of Insurance and Financial Advisors (NAIFA)
Mortality Table
Mortality Table: Definition, Types, and Uses
Wanton Disregard
Associate In Claims (AIC)
Foreign Credit Insurance Association (FCIA)
Foreign Credit Insurance Association (FCIA)
Captive Insurance Company
Captive Insurance Company: Understanding What It Means
Business and Personal Property Coverage Form (BPPCF)
Business and Personal Property Coverage Form (BPPCF)
Builders Risk Coverage Form
Builders Risk Coverage Form
Risk-Based Deposit Insurance
Risk-Based Deposit Insurance
Transfer of Risk
Transfer of Risk Definition and Meaning in Insurance
Assigned Risk
Home Insurance Concept Child Protecting House by Hands with Copy Space
Federal Insurance Office (FIO) Definition
American Academy Of Actuaries (AAA)
American Academy Of Actuaries (AAA)
Mutual Insurance Company
Mutual Insurance Company: Definition and How They Invest
Consequential Loss
Consequential Loss: Definition, Insurance, Vs. Direct Loss
Associate in Insurance Services (AIS)
Midsection of Businessman Using Calculator and Laptop at Desk
Associate in Reinsurance (ARe)
Business Automobile Policy (BAP)
Business Automobile Policy (BAP)
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What Is a Chartered Property Casualty Underwriter (CPCU)?
Benefit-Expense Ratio
Benefit-Expense Ratio
Account, Accounting Concept
Market Value Clause
Annual Premium Equivalent (APE)
What Is an Annual Premium Equivalent (APE)? Calculation Defined
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Monopolistic State Fund
Cash Flow Underwriting
Cash Flow Underwriting
Frequency Severity Method
Frequency-Severity Method: Definition and How Insurers Use It
Probable Maximum Loss
Probable Maximum Loss: Definition and How to Calculate It

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