Insurance Intro for Retailers

1. INSURANCE
IN RETAIL
A N J AY R A J

2. INSURANCE
Insurance is a means of protection from financial loss. It is a form of risk
management primarily used to hedge against the risk of a contingent,
uncertain loss.

3. PARTIES TO AN INSURANCE
• INSURER
Also called as assurer/underwriter who agrees in consideration of a sum of
money to make good the loss suffered by the insured.
• INSURED
Also called as assured/beneficiary is the party who wants to minimize risk and
makes an agreement with Insurer
• SUBJECT MATTER
Property or entity or personnel which is insured
• INSURABLE INTEREST
The interest possessed by the insured in the subject matter of insurance

4. RETAIL INSURANCE
Retail Insurance can help protect your business against lawsuits and financial losses resulting from a
number of situations. A customer can fall and injure themselves; property could become damaged or
stolen, employees could become injured or sick.
Coverages might include:
 General Liability Insurance
 Property Insurance
 Buildings Insurance
 Loss of Income Insurance
 Identity Theft Insurance
 Valuable Papers Coverage
 Worker’s Compensation
 Commercial Auto Insurance

5. REQUIREMENT OF INSURANCE IN RETAIL
1. SECURITY AND SAFETY:
It gives a sense of security and safety to the businessman. It enables him to receive compensation
against actual loss. He can concentrate on his business with a secure feeling that in case of losses
arising from insurable risk, his losses will be compensated.
2. DISTRIBUTION OF RISK:
Risk in insurance is spread over a number of people rather being concentrated on a single individual.
3. NORMAL EXPECTED PROFIT:
An insured trader can enjoy normal margin of profit all the time. He is protected from unexpected
losses because of insurance.
4. EASY TO GET LOANS:
A trader can get bank loans easily if his stock or property is insured, as insurance provides a sense of
security to the lenders.

6. 5. ADVANTAGES OF SPECIALIZATION:
Businessmen can concentrate on their business activities without spending more time on
safeguarding their property. The insurance companies, on the other hand, can provide specialized
insurance services.
6. DEVELOPMENT OF SOCIAL SECTORS:
Insurance funds are available for economic development particularly for the development of social
sectors. Especially for a developing country like India, insurance funds are an important source for
investing in infrastructure projects (roads, power, water supply, telecom etc).
7. SOCIAL COOPERATION:
The burden of loss is shouldered by so many persons. Thus, insurance provides a form of social
cooperation.

7. THANK YOU