You have a friend, Icahn Betitall, who just started a small business. He is payi

Question

You have a friend, Icahn Betitall, who just started a small business. He is paying a hefty premium for insurance. Icahn’s insurance agent told him that he is insuring against the risk of loss on fire, theft, liability, and business interruption. Icahn also has policies for life, health, and automobiles. Icahn is planning a trip to Las Vegas. He plans to contact his agent and obtain a policy on the risk of losing his money at the blackjack table.

a. What will you tell Icahn about being able to purchase such a policy?

b. What are several methods that Icahn can choose to manage his risk exposure in Las Vegas?

Explanation / Answer

a. He should assess the potential risk based on the experience with others and accordingly risk should be covered in the Insurance Policy. In addition to that he should also buy the theft policy.

b. He should take a single policy covering all type of risk including personal and monetary.

He should also take the travel insurance policy to cover the risk of life. Before taking all the insurance policy he must refer the terms and conditions of the policy. He should also see the claim procedures and ease of filing the same.

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