It is highly recommended that you purchase business insurance as soon as possible after you have officially established your company. There are quite a few insurance firms in Nigeria; nevertheless, it is possible that some of them do not fully cater to the needs of smaller organizations.
Customers can choose from a variety of insurance policies and plans when purchasing coverage from one of Nigeria’s many insurance firms. However, some of these policies and plans might not be necessary for a smaller company.
This indicates that the insurance policy you require to safeguard your firm will determine the insurance company you go to; more specifically, you will go to the insurance company that provides the precise plan you require.
There are several types of insurance policies that are not offered by all insurance companies. These policies are extremely vital for small businesses, but not all insurance firms provide them.
Therefore, in this piece, we will be disclosing the finest insurance firms in Nigeria that are capable of offering the most comprehensive insurance plans, which are necessary for the protection of your company.
Even though the word “insurance” has been around for a very long time, a surprising number of individuals still appear to have trouble understanding what “insurance” actually means.
Insurance can be thought of as a type of deal or contract in which an individual or corporation receives a guarantee of protection against any type of loss from an insurance provider. This protection can be against any type of damage.
An insured person or firm would always be compensated by the insurance company in this scenario, regardless of whether the loss or damage was covered by the policy or not.
How Insurance Works
In Nigeria, in order for an individual or a business to be covered by the policies of an insurance company, that individual or business must first register with the relevant insurance company.
There are always certain expenses that such an individual is expected to be paying to the firm; it might be monthly or otherwise. Mere registration is not truly the biggest sacrifice necessary to get covered by an insurance company.
The costs are not necessarily extremely high, and they could be different from one insurance provider to the next. The cost of the insurance premium could also be determined by the insurance policy or plan that you select.
Let’s say you decided to get an insurance policy for N1 million from your chosen insurance company. If this is the case, the insurance provider may demand that you make a payment of up to N5,000 to them on a monthly basis.
The sum of N5,000 is, in fact, the insurance premium, and in the event that your firm suffers any kind of financial setback, the company would deduct the cost of your premium from the total amount used to reimburse you with N1 million.
A “contract of adhesion” is another term that can be used to refer to an insurance policy. It can be thought of as a contract or an agreement between you or your organization and your insurance provider, typically defining the coverage or the type of protection they would provide you in the event of an emergency.
After you have signed up with an insurance company and paid for the insurance policy that you have selected, you will receive an email with your personalized insurance policy. This policy will include important information such as your insurance policy number, the length of time that your company is covered, the cost of your coverage, your deductible, and the things that are not covered by your policy, among other things.
Different Types Of Insurance Policies
In reality, there are a wide variety of insurance policies from which you can pick and choose according to your requirements. The following are some of the most common ones:
- Life Insurance
- Health Insurance
- Long-Term Disability Insurance
- Property Insurance
- Business insurance, etc.
If the insured person passes away, life insurance is always intended to provide financial help for the deceased’s family.
In most cases, the purpose of health insurance is to make it possible for the insured person to receive medical assistance in the event of a medical emergency.
In the event that the insured person becomes disabled due to an accident or illness, disability insurance is designed to give them financial assistance over the long term.
The purpose of property insurance is to offer financial help to the insured in the event that their insured properties are destroyed or damaged.
In the event that the insured company finds itself in a position where it requires various forms of support and protection, business insurance is designed to fulfill these requirements.
Insurance Policies For Small Business
Even while there are many different kinds of insurance policies that are well-suited for small businesses, it’s possible that the vast majority of these policies aren’t actually required for every kind of organization.
For instance, the insurance policy that is most suited for a home-based business might not be the same as the one that is best suited for a transportation business.
Accordingly, the kind of company for which the insurance policy is purchased ought to be a primary consideration in your selection.
Having said that, the following are some of the most crucial types of insurance coverage that you should think about purchasing for your small business:
- 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)
By purchasing this insurance policy, your company is safeguarded against the possibility of causing any kind of harm or injury to a third party or another individual.
Business property insurance
Your company is safeguarded against the possibility of incurring property damage as a result of this measure.
Fire And Special Peril Insurance
This protects your company against the possibility of suffering financial losses or damage due to an outbreak of fire and other catastrophic events, such as riots, floods, and so on.
The startling frequency with which fires occur in modern-day workplaces and offices is a cause for serious concern. There have been a lot of people who have lost their businesses to fire outbreaks, leaving them with nothing to start from; this is why it is very necessary for any form of business to have this insurance policy.
After you have purchased this insurance coverage from one of the reputable insurance companies in Nigeria, you can rest assured that the company will provide you with financial assistance if your company suffers any kind of damage due to a fire.
Product Liability Insurance
This insurance policy will safeguard your company from any losses that may be incurred as a result of customers purchasing and utilizing your goods.
This insurance policy protects your company against the possibility of suffering financial losses due to the occurrence of a road accident while your goods are being transported from one location to another.
The risk of damage or loss that may be incurred as a result of theft is covered by this policy. This implies that if your firm is ever the victim of an armed robbery or another type of theft attack, your insurance provider will be the one to pay to replace any property or items that were taken or damaged in the incident.
For Small Businesses, The 16 Highest Paying Insurance Companies In Nigeria
As I mentioned before, there is a large number of insurance firms in Nigeria. However, not all of them provide insurance products that are suitable for use by smaller organizations.
Now that we’ve gone over the types of insurance policies that are most suitable for a small company, I’ll go over some of the insurance providers in Nigeria that supply some of those insurance policies.
- AIICO Insurance Plc
- Custodian and Allied Insurance
- AXA Mansard Insurance
- Leadway Assurance Company Limited
- Cornerstone Insurance Plc.
- Goldlink Insurance Plc.
- NEM Insurance Plc
- Mutual Benefits Assurance Plc
- Continental Insurance
- Industrial and General Insurance Plc.
- Lasaco Assurance Plc.
- Anchor Insurance
- Consolidated Hallmark Insurance Plc.
- Staco Insurance Plc.
- Prestige Insurance Ltd
- Coronation Insurance Plc.
AIICO Insurance Plc
This is one of the oldest insurance businesses in Nigeria, and over the years, it has accumulated a wealth of knowledge about the insurance business. As a result, the company is able to provide consumers with high-quality goods. The company, which is also known as the American International Insurance Company, provides services such as the following:
- life assurance and annuity
- general insurance
- health insurance
- pension management
- property insurance
Here is the physical address of their head office: Plot PC 12, Church Gate Street, Victoria Island, Lagos State.
Custodian And Allied Insurance Company
Custodian and Allied Insurance Company is one of the most well-known insurance providers in Nigeria, and it offers the chance for proprietors of small businesses to purchase coverage that would safeguard their firms.
The auto insurance policy that this firm provides is the one that is best suited for protecting small companies out of all of the other insurance plans that it offers.
In addition to auto insurance, Custodian and Allied Insurance Company provides the following additional insurance policies: travel insurance, capital insurance, immediate annuity insurance, investment plus insurance, tuition protection insurance, and auto insurance.
AXA Mansard Insurance
This is one of the most well-known insurance firms that cater to the needs of proprietors of smaller companies and offers them security.
AXA is so well-known that it provides its services to as many as 107 million customers in more than 60 countries.
Regarding the many insurance plans that AXA has available, the General (Business and Tourism) Protection coverage is the one that is best suited for use by smaller companies.
Additional insurance plans provided by AXA include the following: auto classic policy, money market policy, easy care policy, student protection policy, auto flex policy, instant policy, health policy, equity income policy, life savings policy, retirement savings policy, and auto flex policy.
Leadway Assurance Company Limited
Since its founding in 1970, this insurance provider has been providing a wide variety of clients with comprehensive insurance and financial services. As a result, we feel comfortable recommending them to the general public, and you are welcome to sign up for a subscription to any of their goods, such as:
- General insurance
- Life and Health Insurance
- Property Insurance
- Savings and Investment Plan
- Annuities and Pensions
- Premium Finance
- Marine Insurance
- Agric Insurance
- Motor Insurance
Their physical address is 121/123 Funso Williams Avenue, Iponri, Lagos State.
Cornerstone Insurance Plc
Since it was formally established as a private limited liability company on July 26, 1991, the Cornerstone Insurance Company has been enjoying tremendous success.
It is one of the greatest insurance companies in Nigeria and offers protection against a wide variety of dangers that might affect individuals, businesses, and other types of organizations.
The Cornerstone Insurance Plc. Goods in Transit Policy is the insurance policy that is best suited for small businesses out of all of the insurance policies that are supplied by the company.
The company also provides the following additional insurance policies: life insurance, annuity insurance, marine insurance, travel insurance, motor insurance, gadget protection insurance, investment insurance, halal takaful insurance, school fee guarantee insurance, and home insurance.
One of the many insurance firms in Nigeria, Goldlink Insurance Plc, is committed to protecting individuals and businesses from any and all types of risk.
It was first established on April 15, 1992, as a private limited liability business. However, on May 11, 2007, it was changed to a public liability company and has since existed.
Motor Insurance, Fire and Special Perils Insurance, Oil and Gas Insurance, Life and Pension Insurance, and Travel Insurance are just some of the insurance coverage that Goldlink has available to its customers.
This insurance firm was initially established on April 15, 1992, as a Private Limited Liability Company. Later, on May 11, 2007, it became a Public Liability Company, and on February 12, 2008, it was listed to trade on the New Zealand Stock Exchange (NSE).
Goldlink Insurance Plc has the necessary permits to engage in the life and general insurance business. These include plans such as Motor Insurance, Fire and Special Perils, Oil & Gas, Life & Pension, Travel Insurance, Marine & Aviation plans, Engineering Insurance, General Accident Plans, and so on. Other plans include travel insurance, marine and aviation, engineering, and general accident plans.
NEM Insurance Plc
NEM Insurance Plc is one of the most reputable insurance firms in this general area and one of the most established, having first opened its doors for business in 1948. They provide many types of general insurance, such as travel insurance, property insurance, and so on.
Here is the physical address of NEM Insurance Plc: 199 Ikorodu Rd, Obanikoro, Lagos state.
Mutual Benefits Assurance Plc
This company has been providing its services to the general public for over twenty years. You will be provided with excellent compensation if you choose to subscribe to their items. These are some of the things that they have:
- Pure life insurance
- Children education plans
- Insurance for motor, travel, e.t.c.
This is their physical address: Aret Adams House, 233 Ikorodu Road, Ilupeju, Victoria Island, Lagos State
The Continental Insurance Company has a reputation for being the most successful insurance provider in the private sector of the Pan-African market. The Continental insurance firm provides various insurance plans, including Business insurance, a plan for Home insurance, a plan for Pet insurance, and Auto insurance plan.
Industrial and General Insurance Plc
One of the most reliable insurance companies in Nigeria, an industrial insurance company, has been in operation for more than 20 years and has earned a reputation as one of the most reliable insurance companies in Nigeria. This company assists both individuals and businesses in mitigating a variety of risks.
Industrial and general insurance firms offer insurance plans such as Aviation Insurance, Engineering Insurance, General Business Insurance, Group Life Products, Mobile Phone Insurance, Marine Insurance, and Health Insurance.
Lasaco Assurance Plc
On December 20, 1979, Lasaco Assurance plc was founded, and on July 7, 1980, it received its license to operate as an insurer. Prior to this, the company was known as Lagos State Assurance Company.
It is one of the insurance companies in Nigeria that offers a selection of insurance plans that are particularly well-suited for use by smaller organizations.
Marine insurance, professional indemnity insurance, fire and special risk insurance, motor insurance, aviation risk insurance, personal accident insurance, and bond insurance are only some of the company’s insurance policies.
Since it opened its doors in November 1989, Anchor Insurance has established itself as one of the most reputable insurance firms that provide general business insurance.
Consolidated Hallmark Insurance Plc.
The crew at Consolidate Hallmark Insurance is highly skilled and experienced, and they put in a lot of effort to ensure that the company continues to be among the very best in the country. As a result, the firm can claim to have some of the greatest people in the industry.
Consolidated Hallmark Insurance Plc offers personal insurance to help protect folks from potential losses.
Here is their physical address: No 266, Moshood Abiola Way, Obanikoro, Lagos state.
Staco Insurance Plc
Another insurance provider in Nigeria, Staco specializes in providing small businesses with customized insurance plans that meet their unique needs. The Staco Insurance Company focuses mostly on general insurance and specializes in unique risks.
Prestige Insurance Ltd
Insurance and reinsurance are both services provided by Prestige Insurance Ltd., which has been in business for a significant amount of time. You can sign up for any of their services, such as claim advising and management, life and provision of risks identification management, and so on. It is important to highlight the fact that this insurance firm has been recognized as the insurance broker of the year, as this accomplishment has contributed to the company’s reputation in the industry.
Here is their physical address: 19 Ligali Ayorinde Street, Victoria Island, Marina, Lagos State.
Coronation Insurance Plc
Coronation Insurance Plc first opened its doors for business in 1958, and ever since then, it has been widely regarded as one of the most successful insurance providers across Africa.
The insurance coverage that the company provides includes both general and particular risk protection for enterprises.
Factors To Consider Before Choosing An Insurance Company For Your Business
Even if there are many insurance firms in Nigeria that are able to cover the needs of small businesses, it’s possible that some of them would only serve a specific category of businesses.
Before selecting an insurance provider, there are a few things you need to think about, and the answers to these questions will vary depending on the kind of work you perform and the choices you make.
Your Type Of Business
Your line of work is the single most important factor that should guide your choice of insurance provider, so give it some thought.
Because different insurance companies in Nigeria typically offer a variety of insurance policies, it is imperative that you select an insurance provider that offers the insurance policies that are appropriate for your organization’s needs.
For instance, if your business involves transporting goods from one state to another, you will likely require coverage for commodities while they are in transit.
You are aware that not all insurance companies provide goods-in-transit insurance policies. Consequently, you will need to choose one of the insurance companies that does provide goods-in-transit insurance policies. You are aware that not all insurance companies offer goods-in-transit insurance policies.
Your business needs
It is possible that you do not really need to pay for each and every insurance policy that is offered by an insurance provider; you only need to pay for the insurance policy or policies that your business needs the most. This is quite similar to what I just described before.
If you conduct an analysis of the primary dangers that your company is exposed to, you will have no trouble determining the kind of insurance coverage that is appropriate for your company.
For instance, if your company transports its goods from one state to another, you are already aware of the primary dangers that your company could encounter, such as an accident, an armed robbery, and other similar scenarios.
You have gained an understanding from this that some of the insurance policies you might require for your company include a burglary insurance policy, an insurance policy for items that are in transit, and so on.
Reputability of Insurance Company
There is a possibility that not all insurance firms in Nigeria will meet their promises. It is possible that some of these organizations will take your money but will not be ready to support you in accordance with your insurance policies in the event that you require assistance.
However, there are quite a few insurance firms in Nigeria that have established themselves as having solid track records, so before settling on a choice, you should check out the evaluations that previous customers have left for the insurance company that you are considering using.
It is possible for the cost of purchasing insurance plans to differ significantly between different insurance companies. There are some insurance firms in Nigeria whose insurance policies may be purchased for a very low price, but there are other insurance companies in the country whose policies are extremely expensive.
Check the amount of money you have in your bank account and the price of the insurance policies offered by the company to determine whether or not you can realistically afford them before selecting an insurance provider.
Why You Need Insurance For Your Business
The majority of people in Nigeria have traditionally held inaccurate beliefs regarding insurance. For example, they have traditionally believed that insurance is primarily intended for people who actively seek to die. Because of this, once you inform specific individuals about insurance, they will respond by saying that they do not wish to pass away quite yet.
However, contrary to what many believe, insurance is not like what they have pictured it to be. Even if people never play for misfortune or pray for it, diverse calamities afflict people on a daily basis, even though they have never prayed for it or played for it.
That we should constantly prepare for the worst and expect the best is advice that was frequently given to me by one of my philosophers, and it is advice that I consider to be wise.
Preparing for the worst does not necessarily mean that you are expecting the worst to happen; instead, it is a prudent way of avoiding disappointment and frustration in any difficult time in our lives, especially in light of the fact that we live in a world in which we do not have control over many of the things that happen to us.
Therefore, it would be quite prudent and in your own interest to insure your company in order to protect yourself against any and all hazards that may materialize at some point in the future.
As we’ve come this far, I’m sure you must have some understanding of the benefits of purchasing insurance for your company. But just in case you haven’t come up with a single justification, here are a few of the most crucial reasons why you should insure your company:
It’s Recommended By Law
Depending on the state in which the company’s headquarters are located, the Small Business Administration (SBA) suggests that companies, particularly those that employ people, should provide their workers with various types of insurance, including workers’ compensation, unemployment, and disability coverage.
Immunity Against Legal Issues
Do you really know that there is a possibility that an individual or a group of people could sue a company if a problem arises at some point in the future? In such a scenario, it can develop into a major issue, and if there is no insurance policy to cover it, the company might go out of business.
Protection From Unforeseen Misfortunes
No one ever wishes for bad things to happen to them, but we can’t deny the reality that we live in a world where we don’t have much influence over the things that do take place in our lives. In the meantime, business, in general, is fraught with danger; there is no guarantee of profit or loss. However, if you have insurance, your company is protected against any and all forms of potentially expensive hazards at any moment.
It makes a business credible
Building a solid relationship with one’s clientele is one of the most challenging aspects of running a business. However, a solid clientele relationship is an excellent asset for any business’s success, given that any firm’s success rests on the shoulders of the clientele.
Insuring your company is, in reality, one of the best techniques that can be used to establish strong client trust, much beyond what you could possibly imagine. Your potential clients or consumers will feel more at ease dealing with your company if you have insurance. It gives customers the impression that they have nothing to lose by investing in your company, regardless of what may occur with your company because they know your insurance company will always be there to assist you.
Those who actively seek their own deaths have no need for insurance. It is a common misconception that those who purchase insurance somehow invite death or other unfavorable outcomes upon themselves. However, this is really an illusion.
Purchasing necessary insurance policies from a reputable insurance provider is the best thing you can do for yourself and your small business if you are a small business owner.
There are a great number of people who have embarked on entrepreneurial endeavors but have, for one reason or another, been completely unsuccessful in running their businesses to the point that they cannot begin again.
It is a lot of fun to launch and manage a prosperous business, but your top concern should be to ensure that the firm stays operational at all times and that you do not let anything bring it to a halt.
Nobody ever wishes for bad luck to come their way, but the truth is that nobody knows what the future holds because we don’t have much influence over it.
There is no such thing as an impregnable corporation; regardless of how large an organization has become, it is still susceptible to failure in the event that a significant obstacle presents itself.
I am well aware that you do not have the financial means to afford to let that company fail. It is never simple to launch a successful company.
Remember that we should always assume the best but make preparations for the worst. When you are ready for the worst, it turns out that the worst rarely happens because it seems to understand that you are already ready for it and won’t be influenced by it.
But if you haven’t made any preparations for the worst-case scenario, it will be far easier for that scenario to bring you down.
Because of this, you need to have insurance for the company you manage; go through the many insurance companies and policies covered in this piece, and choose the ones most appropriate for your company.
I do not doubt that reading this content will be beneficial. We would appreciate it if you could let us know your thoughts or questions in the comment area.