Every business has its share of Risks – Trading and Pure. The latter is defined by one characteristic – should the risk take place, then there is only one outcome – event(s) leading to Financial Losses. The latter kind of losses, i.e. Pure Risks, are the ones that are covered by Insurers. Risks, Hazards, Perils, Losses and Consequential Losses – are common in any business, while running an enterprise. Welcome to the world of Property and Casualty Insurance where some of the commonly used terms in English have a slightly different meaning and connotation in the world of Insurance.

• Risks in the Insurance parlance are the properties that are insured.
• Hazard is the possibility and the probability of an event, accidental and unforeseen, taking place
• Perils are the causes of these events
• Losses are the financial damage that is caused and
• Consequential losses are the aftermath of the events that lead to loss of profits, increased cost of working

Every activity of business has a risk involved. Be it manufacturing, storage, be it the dispatch or receipt of goods, be it the employees who ensure that the business is running – every aspect of it has a risk exposure. Due to changes in the business activities, nature of risks has been changing, perils and cause of events have been adding up in addition to the existing ones, like Cuber Risks, Advance Loss of Profits and like. New Activity. New Risks. New Coverage.