Insurance in Nigeria, generally is a thing many people don’t even care about and I wonder if it’s ignorance or just a nonchalant attitude. Majority of Small and Medium Scale Enterprises (SMEs) in Nigeria don’t have any sort of insurance coverage which no doubt helps in unexpected events or unforeseen circumstances. Trust me, not having an insurance is like a fisherman fishing in an ocean filled with sharks with a mere hook. That’s one of the 1000 ways to die.
The primary function of any insurance company, whether in Nigeria or anywhere in the world is to protect the business from potential risks that might arise in the cause of running the business. According to Investopedia, there are many types of insurance for business like property damage, legal liability and employee related risk. It’s left for you as an entrepreneur to know the risk involved in your business and the type of coverage to go for.
Recently, there have been a tremendous uproar in the health insurance sector and it left me stunned. Insurance in Nigeria is something that is intentionally overlooked, but it amazes me that people are getting health conscious and are even securing health insurance. Although business insurance is yet to experience such growth, but it’s inevitable because of the nature of the business world, especially in the coming years.
In this article, I’m going to wear off the veil of ignorance by helping you know more about how to get a business insurance in Nigeria and how you as a business owner can leverage that into protecting your business. I’m going to make it as simple as possible, without using ambiguous words that might confuse you and I. Trust me, you will get a hang of this when you’re through with this article. Just promise me that you’ll leave a comment and share after reading. *winks
WHAT IS BUSINESS INSURANCE?
In a simple term, business insurance is just a way of protecting your business from unforeseen circumstances like accidents, fire outbreak, third-party claim etc. With insurance, you’ll be able to get back on your two feet whenever such incident occur. We don’t pray for it, but it’s one of the inevitable of life.
HOW TO GET A BUSINESS INSURANCE POLICY IN NIGERIA
1. DO YOUR RESEARCH
This is the first stage and undoubtedly the most important aspect in this journey. A simple Google search can help you with the types of business insurance and the best coverage for your business. Understanding the basic things involved in business insurance in Nigeria will help you make better decisions. Insurance in Nigeria isn’t a daunting task especially when you already have an idea.
2. ANALYZE YOUR BUSINESS
Two businesses can’t be the same. There are usually unique attributes that makes each business distinct from the other. For example, a home base Event Planner may carry a basic general Liability Policy. However, an Event Planner who owns property that customers visit would be better served by a more comprehensive Business Owners Policy, often referred to as a BOP.
3. FINDING THE RIGHT COMPANY
Before writing this article, I made a quick Google research for “insurance in Nigeria” and lots of insurance companies pulled up in Google business listing. However, a company is at the top of the search doesn’t mean they are the best.. You have to make a thorough research in other to get the right insurance company that will serve your needs. Also ask for business insurance quotes from companies to know more about their nature of service and background. Development of insurance in Nigeria is still at its infant stage, but the right company will make sure you get the best service available.
4. REVIEW AND PURCHASE
If you’ve done the first two steps, review won’t be a hassle. Review has to do with understanding the risk posed to your business and purchasing the coverages that suit. When you have purchased all, review all that have been insured and keep account of them. Make sure you have important documents like the quotes, invoice etc.. Those documents will be needed when making a claim.
5. ANNUAL REVIEW
Your business can never be the same after a year. Chances are that you might have expanded which will also require increasing your insurance coverage. If you’ve employed more workers, Workers Compensation Coverage becomes a necessity. You should be able to analyse your business to know the coverage to drop and the one to add to your insurance plan.
Insurance in Nigeria is fast evolving, alongside the business world which means you’ve to step up your game too. Getting a business insurance policy in Nigeria isn’t hard. Know the kind of coverage your business needs, sought for the right insurance company in Nigeria and purchase the coverages that will best serve your business. You also have the right to drop or add more additional coverages as the business grows.