Commercial risk - the risk that arises in the process of selling goods and services produced or purchased by the entrepreneur. The main causes of business risk:- Decrease in sales as a result of falling demand or need for goods sold by the business, forcing his rival products, restrictions on the sale;
- Increase the purchase price of goods in the course of business of the project;
- An unexpected decline in purchases compared with the target, reducing the scale of the operation and increases the cost per unit of volume of goods sold (due to fixed costs);
- The loss of the goods;
- The loss of quality of the product during handling (transport, storage), which leads to a reduction in price;
- Increasing distribution costs, compared with the target as a result of the payment of fines, fees and contingency fees, which leads to lower profits of business firms.
Commercial risk include:
- Risks associated with the sale of goods (services) on the market;
- Risks associated with the transportation of goods (transport);
- Risks associated with acceptance of goods (services) by the buyer;
- Risks associated with the buyer's solvency;
- The risk of force majeure.
Notably the transport risk. At present, various transportation risks are classified according to the degree of responsibility, and in the four groups E, F, C, D.
Group E includes the situation where the supplier (seller) keeps the product in their own warehouses (Ex Works). In this case, the risk takes on provider before accepting the goods by the buyer, and the risk of transportation from the seller's premises to the final point made by the buyer.
Group F consists of three specific situations transfer of responsibility:
FCA - the risk and responsibility of the seller are transferred to the buyer at the time of delivery of the goods at the appointed place;
FAS - the responsibility and risk for the goods pass from the supplier to the buyer at the port by the agreement;
FOB - seller will not accept liability after unloading the goods from the ship.
Group C includes situations where the seller enters into an agreement with the buyer of shipping, but does not assume any risk. These are the specific situations
CFK - seller pays the cost of transportation to the port of entry, but the risk and responsibility for the safety of the goods and the additional costs the buyer takes over;
CIF - except duties, as in the case of CFR, the seller provides and pays for insurance risks during transportation;
CPT - buyer and seller share the risk and responsibility. At a certain point (usually some intermediate point transport) risks fully transferred from the seller to the buyer;
CIP - risks are transferred from the seller to the buyer at a certain intermediate point of transportation, but in addition, the seller provides and pays the cost of the insurance product.
Group D means that all transportation risks borne by the seller. This group includes the following specific situation
DAF - seller assumes the risk to some of the border. Further risks are taken by the buyer;
DES - transfer of risk to the buyer the seller is on board;
DEQ - transfer of risk occurs when the goods arrive at the port of loading;
DDU - seller takes the transportation risks to a certain place of the contract (usually stock) in the buyer;
DDP - the seller is responsible for the transport risk to a certain place on the territory of the buyer, but the buyer will pay.
Usually commercial risk insurance policy allows for the following risks:
adverse changes in market conditions;
breach of contract business partners, customers, clients of the insurer;
various unforeseen circumstances (force majeure).
Sum insured - is an essential party to the transaction of insurance business risk. It is determined by the insurer with the participation and consent of the insurance company. Thus possible to determine the amount of insurance on the basis of:
capital investments in the insurer invested projects. In this case, the insurance amount will be equal to the sum of capital investments;
capital investments and the inherent rate of return. In this case, the insured amount will be equal to the cost of the project invested plus the profit from its sale. So in this case is called insurance insurance profits.
The deadline for parties to a contract of insurance provides the payback period of capital investments in certain business entrepreneur project. Policyholder tries to reduce the payback period, it is due to an increase in profitability of business operations. The insurer, in contrast, tends to increase the time limit, because in this case it risks resulting in the payment of the sum insured to the insured, to a minimum. Therefore, in this case, the parties are guided not only general information about the business project and calculate the nominal payback periods, and personal motives, which are based on the reduction of possible losses.
Have insurance of commercial risks and their specific constraints. In particular, it is not insured brokerage business, as well as investments in gambling. Usually limited and the maximum amount of compensation to the insured, it reduces the risk of the insurer.
Insurance of commercial risks in Russia is relatively new insurance product. However, this type of insurance is very promising, because the domestic businessmen behind foreign counterparts, are beginning to appreciate his calm and stable financial position.
