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Business Insurance In Nigeria And How To Go About It

 

Getting insurance for your business is the greatest service you can do for your business. Doing business is replete with so much risk, which could include fire outbreaks, accidents, lawsuits, robbery and so on.


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In these risks, you could lose your capital and profits. Before we move on, let’s delve into understanding what business insurance entails. You may ask, what is Business Insurance? This can be defined as protecting your business from losses that may occur when running your business.

Many issues occur that may lead to the death of a business, that’s why you must not trivialise insuring your business. There are seven types of business insurance. They include:

  1. Business Property Insurance

This policy prevents you from losing business properties such as factory equipment, tools, vehicles, computers etc. It covers the damages.

  1. General Liability Insurance

This policy protects you from losses resulting from injury or damage to a third party.

  1. Professional Liability Insurance

This policy is known as Errors and Omissions Insurance, which covers errors done by your business as a result of negligence.

  1. Business Interruption Insurance

The policy covers you and your business from going under when a catastrophic event occurs.

  1. Directors’ & Officers’ Liability Insurance

This ensures your directors and management from lawsuits brought against them due to their managerial errors.


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  1. Workers Compensation Insurance

This type of insurance protects your company if they get injured on the job; this will save you money for paying for their medical bills.

  1. Employment Practices Liability

This covers your business from any claims of harassment, wrongful termination, discrimination and other forms of image denting claims from employees.

How To Get Business Insurance In Nigeria

  1. Choice Of Business Insurance Type

If your business is registered under the CAC, you get certain protections for choosing a business structure like LLC. Although it might be limiting, your business is at least insured.

  1. Assess Potential Business Risks

Inasmuch we do not hope for the worst, it’s expedient that you know what the potential risks are so that you can employ the services of an insurance company and know what risk you’re up against.

  1. Employ A Standard Insurance Agents

Insurance agents link you up with suitable insurance companies whose insurance policies suit your business type and needs. However, ensure that the agent is reliable and licensed to avoid employing the services of crooks.

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Nnaemeka is an academic scholar with a degree in History and International Studies from the University of Nigeria, Nsukka. He is also a creative writer, content creator, storyteller, and social analyst.

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