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Evaluating the risk

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Question 1: Eric owns a company that makes self-­darkening windshields for vehicles, Sun-­2-­Shade. He is aware of the risks of owning a business and is considering various insurance plans. Eric would like to make sure that he won't incur any losses, and so is thinking about buying policies from two different companies just to make sure that not only will he be covered but could make money while the company was down. Eric figures that he will be able to manage the risks and losses if something happens. As Eric's risk manager, please help him in evaluating the risk and what would you tell him about this plan.

Reference no: EM132577696

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