A sound knowledge of business insurance policies can be of great help in growing and protecting your business in Nigeria. Business insurance coverage is thus, a priceless avenue for securing a business against loss, either with respect to the actual business performance itself or damage / loss to the company’s assets, inventory, signage and the likes.
To build a sustainable business therefore, risk management through business insurance must be at the heart of your planning and execution.
Business Insurance meaning
Business insurance policy is a type of insurance that protects many businesses from losses that may occur in the course of the day to day running of a business.
As a business owner, you are exposed to certain risks right from the very first day you commenced your business. So much so, that a single tragic incident or lawsuit could wipe out a small business even before it could get a chance to take off.
Fortunately, businesses have access to a wide range of varying business insurance policies such as the following, which provides them with cover against these unforeseen incidents.
Business insurance policies in Nigeria
Business Property Insurance Policy
Business property insurance is necessary because it covers all your business equipments, inventory, signage and furniture in the event of fire, storm or theft that may occur in your line of business. The extent of the protection offered by the business property insurance however depends on the terms of each particular policy.
This is therefore a very crucial insurance policy because it increases the chances of survival for your business by providing covers against damage and losses resulting from fire, riots, explosion, storms etc. thus, preventing the loss of your business properties.
If you own business equipments, inventories, tools, computer, furniture or any other property you should thus consider getting a business property insurance for them to cover for losses and damages.
Business Interruption Insurance / Loss of Earning Insurance
This policy applies to companies that require a physical location to do business, such as retail store, farms, manufacturing companies etc. In the event that your business cannot operate for a period of time due to some incident, you can cover the income loss with this insurance policy.
No doubt, businesses in Nigeria get interrupted by various incidents say natural disasters or effects of bad governmental policies. The result therefore is that these businesses suffer from income loss while their operations are interruped, this type of insurance is thus meant to compensate your business for loss of income at such critical times.
The business insurance policy not only provides cover against loss of earning as a result of fire outbreak, explosion or some other specified similar incidents which disrupts business operations, it also takes care of costs related to material damage.
Businesses in Nigeria that currently have this policy in place will no doubt recover faster from the losses arising from the corona virus lockdown, because they would receive the settlement from their claims.
Product Liability Business Insurance
The product liability insurance policy for businesses in Nigeria serves to protect small businesses from liabilities, claims or damages that may arise from the use of its products.
Product liability insurance covers any damages your product may have caused a consumer. This is usually so because even when you have taken all necessary measures to ensure that the products which your business offers are entirely safe, a consumer might still have a bad experience using it.
Under this type of policy, financial coverage is provided for the business owner, usually tailored specifically to his or her specific type of product. Product liability insurance is therefore very essential, especially for businesses in Nigeria that engage in manufacturing of products for sale on the general market. OIAS offers this business insurance in Nigeria.
General Liability Business Insurance
General liability insurance policy covers claims against property damage or injury caused or allegedly caused to a third party by either your products, services or employees.Every business thus needs an insurance policy that protects them from losses resulting from injury or damage to the property of a third party in the course of carrying out their daily business activities.
Professional Liability Business Insurance
This is also referred to as Errors and Omissions Insurance (E&O). This insurance policy protects professional business owners from claims or legal liabilities arising from negligence in the discharge or failure to render their professional services to their clients. It is tailored according to the nature of the service you render and therefore applicable if you own a service-based firm viz; law firms, accounting firms, consulting firms and the likes.
Having this insurance cover will protect you against damages or claims that can arise as a result of error, negligence or omission in the course of carrying out your professional duties. The policy also covers financial losses or legal costs.
Workers’ Compensation Business Insurance
Workers’compensation insurance is a type of business insurance policy that protects your employees if they get injured on the job i.e this policy gives protection – medical benefits and wage compensation to employees who are injured while carrying out their duties.
With this insurance policy in place, an employee surrenders his / her rights to sue the employer if workplace accidents occur.
Goods-In-Transit Business Insurance Policy
If you are running a business in Nigeria which involves hauling of goods from one city to another then you might want to consider protecting your goods when on the road with this kind of insurance policy.
Due largely to the poor states of our roads, an astonishing number of accidents take place each day and almost always involves lorries and cargo trucks spilling over their contents on the streets, thus resulting to massive loss for the business owner.
The goods-in-transit insurance policy thus covers your goods from such perils on the road so that even if you lose the goods in transit, you wouldn’t lose your money’s worth in the process as well.
It also protects your goods against fire, theft or accidental damage while the goods are being loaded or unloaded, or whilst temporarily housed within the general course of transit.
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