Abstract
Business enterprises operate in an environment characterized by uncertainty, where risks such as property damage, liability claims, market volatility, and operational disruptions can significantly affect sustainability and growth. Insurance serves as a critical risk management tool by transferring potential financial losses to insurers, thereby enabling businesses to safeguard assets, stabilize operations, and maintain stakeholder confidence. This study explores the multifaceted role of insurance in mitigating business risks, highlighting its contribution to financial resilience, continuity planning, and regulatory compliance. It examines how different types of insurance—such as property, liability, health, and business interruption—address specific vulnerabilities, while also analyzing the strategic importance of insurance in fostering innovation and investment. By integrating theoretical perspectives with practical insights, the study underscores that insurance is not merely a protective mechanism but a catalyst for sustainable business development in an increasingly complex global economy.
References
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Journal of risk and insurance: the flagship journal for the American risk and insurance association, covering theoretical and empirical research on insurance economics.