Now that you have finally set up your business, it would be very wise to protect it with insurance. There are actually many insurance companies in Nigeria but some of them may not really serve for small businesses.
Different insurance companies in Nigeria offer different insurance policies/plans for customers, meanwhile some of these plans may not be needed for a small business.
This means that the insurance policy you need to protect your business would determine the insurance company you would run to; that is the insurance company that offers that particular plan you need.
There are actually some insurance policies that are very important for small business, of which not every insurance companies offer these plans.
So in this post, we shall be revealing the best insurance companies in Nigeria that provide the best insurance policies you need to protect your business.
Though the term “insurance” has being in use for long, but many people seem to still find it difficult to figure out the actual meaning of insurance.
Insurance is a kind of agreement or contract in which an individual or business gets guarantee of protection against any form of loss, from an insurance company.
In this, an insured individual or business would always be compensated by the insuring company, in case of any loss or damage.
How Insurance Works
For an individual or a business to be protected by any insurance company in Nigeria, such individual must have to register with the insurance company.
Mere registration is not actually the major sacrifice for getting insured by an insurance company, there are always some fees that such individual is required to be paying to the company; it could be monthly or otherwise.
The fees are not always costly, and may vary from one insurance company to another. The insurance fee may also depend on the insurance policy/plan you choose.
Let’s assume that in the insurance company of your choice, you chose an insurance policy of N1 million; then the company may require you to be paying up to N5,000 to them every month.
The N5,000 is actually the insurance fee, and it’s from that fee that the company would use to compensate you with N1 million in case there is any loss in your business.
Insurance Policy could also be referred to as “contract of adhesion.” It is a kind of contract or agreement between you/your business and your insurance company; usually outlining the coverage or the kind of protection they would provide you when needs be.
Once you sign up with an insurance company, and pay for your chosen insurance policy, you would receive your personalized insurance policy in your email; detailing things like: Your insurance policy number, how long your business is covered, the price of your coverage, your deductible, what is not covered under your policy, and so on.
Different Types Of Insurance Policies
There are actually many types of insurance policy which you can choose from, depending on your needs. Some of the most popular ones are:
- Life Insurance
- Health Insurance
- Long-Term Disability Insurance
- Propert Insurance
- Business insurance, etc…
Life insurance is always meant to provide financial assistance for the family, in case the insured dies.
Health Insurance is usually meant to provide health assistance to the insured should there be any health challenge.
Disability Insurance is meant to provide long term support to the insured, should there be any misfortune resulting to disability.
Property Insurance is meant to provide support for the insured, in such condition of loss or damages of properties.
Business Insurance is meant to provide various forms of support and protection for the insured business, in any condition that requires such needs.
Insurance Policies For Small Business
Though there are many types of insurance policies ideal for small businesses, but most of these policies may not really be necessary for every type of business.
For example, the insurance policy ideal for a home business may not really be the same with that of transport business.
So, the type of insurance policy you go for may really depend on the type of business it is meant.
Having said this, some of the most important insurance policies you should consider for your small business are:
- General Liability Insurance (GLI)
- Business Property Insurance
- Fire And Special Peril Insurance
- Product Liability Insurance
- Goods-In-Transit Insurance
- Burglary Insurance, etc…
General Liability Insurance (GLI)
This kind of insurance policy protects your business from the risk of any formx of damage or injury to a third-party/someone else.
Business Property Insurance
This protects your business against the risk of damage to your business properties.
Fire And Special Peril Insurance
This covers your business against the risk of damages or loses resulting from fire outbreak and other things like: riots, flood, and so on.
The rate at which fire breakout today in business places and offices is really alarming. Many people have lost their businesses to fire outbreak, having nowhere to start from; and this is why this insurance policy is very important to any type of business.
Once you purchase this insurance policy in any of the reliable insurance companies in Nigeria, the company would pay you financial support should there be any form of fire destruction in your business.
Product Liability Insurance
This insurance policy protects your business from any form of damage that may arise from the use of your products.
This insurance policy covers your business from the risk of damages that may result from road accident in the course of moving your goods from one place to another.
This policy covers the risk of damages or loses that may result from theft. This means that any time there is arm robbery/theft attack on your business, your insurance company would be the one to replace all the stolen or damaged properties/goods.
10 Insurance Companies In Nigeria For Small Businesses
As I have stated earlier, there are many insurance companies in Nigeria, but not all of them offer the insurance policies that are ideal for a small business.
So having discussed the insurance policies that are ideal for a small business, I would be discussing below, some of the insurance companies in Nigeria that offer some of those insurance policies.
- Custodian and Allied Insurance
- Cornerstone Insurance Plc
- AXA Mansard Insurance
- Goldlink Insurance Plc
- Continental Insurance
- Industrial and General Insurance Plc
- Lasaco Assurance Plc
- Anchor Insurance
- Staco Insurance Plc
- Coronation Insurance Plc
Custodian And Allied Insurance Company
Custodian And Allied Insurance Company is one of the most recognized insurance companies in Nigeria that provides the opportunity for small business owners to protect their business.
Among all the insurance policies offered by this company, Auto Insurance is the one that is most suited for small businesses.
Other insurance policies offered by Custodian And Allied Insurance Company are: Travel insurance policy, Capital policy, Immediate annuity policy, Investment plus policy, Tuition protection policy, Auto insurance policy.
Cornerstone Insurance Plc
Cornerstone insurance company has been doing great since it was incorporated as a private limited liability company on July 26, 1991.
It is one of the best insurance companies in Nigeria that is proving protection against various risks involving individuals, business and so on.
Among all the insurance policies offered by Cornerstone insurance Plc, Goods in Transit Policy is the one that is most suited for small businesses.
Other insurance policies offered by the company include: Life insurance policy, Annuity policy, marine insurance policy, Travel insurance policy, Motor insurance policy, Gadget protection policy, investment policy, Halal Takaful policy, School fee guarantee policy, Home insurance policy.
AXA Mansard Insurance
This is one of the most popular insurance companies that make provisions for the protection of small businesses.
AXA is so popular that it serves up to 107 million clients in over 60 countries.
Among all the insurance policies offered by AXA, General ( business/ tourism) protection policy is the one that is ideal for small businesses.
Other insurance policies offered by AXA are: Auto classic policy, Money market policy, Easy care policy, Student protection policy, Autoflex policy, Instant policy, Health policy, Equity income policy, Life savings policy, Retirement savings policy.
Goldlink Insurance Plc
Goldlink Insurance Plc is one of the insurance companies in Nigeria that are dedicated to covering individuals or businesses against any form of risk.
It has being in operation since April 15, 1992, when it was incorporated as a private limited liability company; though it was later converted to public liability company on May 11, 2007.
Some of the insurance policies offered by Goldlink are: Motor Insurance, Fire and Special Perils, Oil & Gas, Life & Pension, and Travel Insurance.
This insurance company was incorporated as a Private Limited Liability Company on April 15, 1992, It later converted to a Public Liability Company on May 11, 2007, and was listed on the NSE by an introduction on February 12 2008.
Goldlink Insurance Plc is licensed to do both Life and General Businesses. These include plans such as Motor Insurance, Fire and Special Perils, Oil & Gas, Life & Pension, Travel Insurance, Marine & Aviation plan, Engineering Insurance, General Accident plan, and so on.
Continental insurance company has been known to be the private sector leader of the Pan-African insurance industry. Some of the insurance policies offered by Continental insurance company are Business insurance, Home Insurance plan, Pet Insurance plan, and Auto Insurance plan.
Industrial and General Insurance Plc
Industrial insurance company has being in operation for over 20 years, hence has been recognized as one of the trusted insurance companies in Nigeria that help both individuals and businesses to reduce some sorts of risks.
Industrial and General Insurance company provides some insurance policies like: Aviation Insurance, Engineering Insurance, General Business Insurance, Group Life Products, Mobile Phone Insurance, Marine Insurance and Health Insurance.
Lasaco Assurance Plc
Lasaco Assurance plc which was known as Lagos State Assurance company, was incorporated on December 20, 1979, and got licensed as an insurer on July 7, 1980.
It is one of the insurance companies in Nigeria that provide some insurance policies ideal for small businesses.
Some of the insurance policies the company provides are: Marine insurance, Professional indemnity insurance, Fire and Special insurance, Motor insurance, Aviation insurance, Personal accident, and Bond insurance.
Anchor Insurance which started operation in November 1989, has been one of the best insurance companies which specializes in general business insurance.
Staco Insurance Plc
Staco is another insurance company in Nigeria that is dedicated in some insurance policies ideal for small businesses. Staco insurance company specializes majorly on General insurance and special risks.
Coronation Insurance Plc
Coronation insurance Plc started operation in 1958, and since then had been known to be one of the leading insurance companies in Africa.
The company offers such insurance policies like: general and special risk businesses.
Factors To Consider Before Choosing An Insurance Company For Your Business
Though there are many insurance companies in Nigeria that can serve for small businesses, but some of them may serve for only some type of businesses.
So, depending on your choice and the type of business you do; there are some few factors you need to put into consideration before going for any insurance company.
Your Type Of Business
The type of business you do would really determine the type of insurance company you should go for.
Since different insurance companies in Nigeria usually provide different insurance policies, then you would really need to go for the insurance company that provides the insurance policies you need for your business.
For example: If you deal in transportation of goods from one state to another, then it’s clear that you may need goods-in-transit insurance policy.
In this, you know it’s not every insurance company that offers goods-in-transit insurance policy; so you would really need to go for any of the insurance companies that provide goods-in-transit insurance policy.
Your Business Need
Just very similar to what I just stated above, you may may not really need to pay for every insurance policy offered by an insurance company; you only need to pay for the insurance policy/policies that your business needs most.
You can easily tell the type of insurance policy you need for your business by assessing the major risks that your business faces.
For example: if you transport your goods from one state to another, you already know that the major risks that your business may face are: accident, arm robbery, and so on.
In this, you have understood that some of the insurance policies you may need for your business are: goods-in-transit insurance policy, burglary insurance policy, and so on.
Reputability of Insurance Company
It may not be all insurance companies in Nigeria that keep to their promises, there may be some that would collect your money and would never be ready to support you according to your insurance policies when needs be.
But there are actually many insurance companies in Nigeria that have made good records; just checkout clients’ reviews of the insurance company you want before making your final decision.
The costs of buying insurance policies may vary greatly from one insurance company to another. There are some insurance companies in Nigeria in which their insurance policies are very cheap to buy, while there are some that their policies are very costly.
So, before choosing any insurance company, check your pocket and the cost of the company’s insurance policies to know if you can actually afford them.
Why You Need Insurance For Your Business
Most Nigerians have always had misconceptions about insurance; they always believe that insurance is majorly meant for those that want to die. That is why whenever you tell some people about insurance, they would tell you that they don’t want to die yet.
But insurance is actually quite different from what many people have presumed it to be. No one ever prayed for misfortunes, but from day to day, different misfortunes befall People even while they never played for it.
One of my philosophers would always say that we should always prepare for the worst and expect the best, and that is what I call wisdom.
Preparing for the worst doesn’t necessarily mean that you are expecting the worst, but a wise way of avoiding disappointment and frustration in any hard time in our lives, esspecially knowing that we are in the world where we don’t have control over many things that happens to us.
So, it would really be wise and to your own advantage to insure your business, and stay safe from any form risks that may arise in future time.
Having said this so far, I believe you must have understood some reasons to insure your business. But if you are yet to figure out any reason, then below are some important reasons you should insure your business:
It’s Recommended By Law
Small Business Administration (SBA) recommends that businesses especially the ones that have employees should provide such insurance policies like: workers’ compensation, unemployment and disability, depending on the state where the business is located.
Immunity Against Legal Issues
Do you actually know that some times problem may come up that a business would be sued by an individual or group of persons? In this case, it may become a serious problem and the business may fold if there is no any insurance covering it.
Protection From Unforseen Misfortunes
No one ever prays for misfortunes, but we cannot hide the fact that we are in the world where we seem not to have much control over what happens to us. Meanwhile, business is always full of risks; it’s either gain or loss sometimes. But with insurance, your business is actually covered against any form of costly risks at any time.
Makes Business Credible
One of the hardest things in business is building customers trust; meanwhile strong customer trust is a great thing for the success of any business since every business’ success lies on the neck of the customers.
Insuring your business is actually one of the best strategies that build strong customer trust even beyond your imagination. Insurance makes your prospective clients or customers feel safe with your business. It makes them feel that they got nothing to lose in your business even if anything happens to your business, since your insurance company is always there to support you.
Insurance is not meant for those that want to die. Many people always think that one paying for insurance is attracting death or misfortunes for himself, but that is actually an illusion.
As a small business owner, the best thing to do for yourself and for your business is buying some necessary insurance policies from reputable insurance company.
There are many people that started business who have lost the business totally because of one problem or the other, without having anyway to start again.
Starting and running a successful business is really enthralling, but your priority should always be to maintain and keep running that business without allowing any thing to shut it down.
No one ever prays for misfortunes, but no one knows what happens in the future since we don’t have much control over the future.
No size of business is above collapse; no matter how big a business has grown, it is still liable to collapse should any overwhelming problem arise.
I know you can’t afford to lose that business before it is never easy to start a successful business.
Remember we should always prepare for the worst and expect the best. When you prepare for the worst, the worst hardly comes because it seems to know that you are already prepared and won’t be affected.
But if you are not prepared for the worst, when the worst comes, it can easily push you to the ground.
This is why you need insurance for that business you run, go through the insurance companies and policies as discussed in this post and go for the ones most suitable for your business.
I know this post is really helpful. Please let us know your view or questions on the comment section.