Business idea/decision insurance

Businesses insure one's heath, vehicles, equipment,

and against fire and water damage but not agaiinst

risks. Why not ?

I think i have a prototype answer:

10 yrs ago, on paper, I invented Bod Bopi;

Business Operations Decisons,

Business Operation's Profits Insurance.

The idea is Using ACTUARIES to focus on the historical

successful decisions that a company has made and

the unsuccessful decisions and create a matrix based on both.

Then, self-fund [from retained earnings] on a prototype

approach, an insurance policy that insures new

decisions.

AFter several firms have done this.....or

just starting it at one INSURANCE firm,

sell this to both start-ups and 'usually' successful firms that are having troubles.

So, if one firm is ready to start, for example, a restaurant

[the most common new start-up], the insurance underwriter would review the business plan and compare to a hundred

other restaurants to see how this will be different.

If the new one is "way out there" , the insurance

would be perhaps equal to 50% of its cost of starting,

so that it can only lose 50% of its net worth.

----

if a restaurant that is in an underserved area and

is following an accepted theme, its rate would be less

expensive.

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if a new invention, start up, the insurance underwriter

compares the similarities of competitors, the biz plan

and the length of time to break even and determines

the risk factor.

--if an expansion of a going firm, it does the same thing

but the cost of insurance is less because the risk

is less to the firm.

------------

facts show 90% OF ALL new businesses are gone

after 5 yrs. With this approach, it is felt that 1/2 of the

start-ups would not be so spontaneous but do more

research. That would stop a lot of failures right there.

those that did fail would at least not walk away broke.

This insurance would require the use of a new type

of insurance, as ID'd above, and it would require the

insurance fim to have a biz consultant in the field,

to ID the difference between supposition and

actuality. And, as mistakes are made at the insured

firm, the consultant can be there to change if

authorized or make fast suggestions to reduce

risks as they occur.

[This insurance inventor is a business consultant].

I seek comments on this.

It is still in the process of being tweaked. I am

proposing that it would take 1-3 yrs to

tweak and polish and when beta is over,

it would alter the world of business decision making.

Scobleizer -- Tech geek blogger

Scobleizer -- Tech geek blogger