Before we delve into Business Insurance, let’s talk about what business entails. Being an entrepreneur can be daunting. From getting business ideas for a solution, getting enough funds, and the right people that believe in your business can sometimes be overwhelming.
Starting your own business (either small or big) is a big, scary step in the unknown no doubt. It comes with lots of risks – the risk of losing your capital, interest, and profit. We explained how to get insurance for your small business and commercial insurance here.
You’re also at risk of employing the wrong employee, losing clients, business deals, and investors.
These are some of the reasons why it is very essential that you get an insurance policy to cover for these events.
What is Business Insurance?
This is a type of insurance that protects a business from losses that may occur. For instance, an interior design company would need business insurance to cover for possible damages to a client’s property in the line of duty.
Some companies have had it rough as a result of lawsuits that were granted by the Courts. This is why business insurance is essential.
Types of Business Insurance
1. Business Property Insurance
The policy keeps prevents you from losing your business properties. If you own office equipment, tools, a computer, or a property you should totally consider getting insurance for them to cover for losses and damages.
2. General Liability Insurance
Every business needs a policy that protects them from losses resulting from injury or damage to a third party’s property. General Liability insurance policy guides against these forms of losses. It is highly recommended for personal use.
3. Professional Liability Insurance
Professional liability insurance is reffered to as Errors and Omissions Insurance. It covers third party claims arising from the negligence of the business.
This form of business insurance policy is applicable to businesses like professional firms – law firms, accounting firms, consulting firms and so on.
4. Business Interruption Insurance
This insurance protects you and your company from going under up when a catastrophic event occurs.
Circumstances like these make business operations be put on hold and interpreted for days. During this time, your business will experience low revenue. This is because your staff won’t be able to operate in the office. A business interruption insurance policy covers losses like this.
5. Directors’ & Officers’ Liability Insurance
Directors’ & officers’ liability insurance protects individuals who serve as directors and officers for your company against lawsuits brought against them due to their management of the company.
6. Workers Compensation Insurance
Workers’ compensation insurance is a type of business insurance policy that protects your employees if they get injured on the job. This will save you money on paying for their medical bills. It also covers the costs acquired as a result of their absence from work for recovery.
7. Employment Practices Liability
This type of business insurance covers your business from claims of harassment, discrimination, wrongful termination and any other forms of claims from employees.
How to Get Business Insurance in Nigeria
1. Pick the Type of Business Insurance You Need
When you were registering your company at the C.A.C, there were certain protections you got from choosing a business structure like an LLC. However, even the scope of that protection is limiting; this insurance fills in the gaps to make sure both your assets and your business assets are safe. We have listed the 7 types of business insurance you can choose from above.
2. Assess Your Risks
Think about what kind of accidents, natural disasters, or lawsuits could end your business. Only you know best what they may be.
3. Find a Reputable, Licensed Insurance Agent
Insurance agents can help you find business insurance policies that match your needs. They receive their commissions from insurance companies. They get a commission when they sell these policies. Therefore it’s essential to find a licensed agent interested in meeting your needs as much as theirs.
Unfortunately, the possibility of finding such selfless Insurance agents in Nigeria is quite slim. You’re welcome to try your luck.
4. Compare Prices
In order to ensure that you get the best value for your money, you need to compare the prices of various Insurance companies.
Prices and benefits can vary significantly, hence, you should compare rates, terms, and benefits for insurance offers.
Getting a business insurance in the wake of the current economic disruptions cannot be over emphasized. From the COVID-19 pandemic to other business threatening events that have plunged into so many businesses – As a business owner, you should be working towards getting a business insurance today