Five Essential Tips For Buying Business Insurance In Nigeria

Five Essential Tips For Buying Business Insurance In Nigeria

One thing we need in this country that we are not doing is investing in insurances. One of the most important insurance is the business insurance. That is why today, we are offering tips for buying business insurance in Nigeria.

Every business no matter how small should start working towards having a little insurance for their businesses. Remember, shit happens and we are not always in control of the outcome of events.

Related: How Best to save money on insurance policies in Nigeria

Buying insurance is more or less taking care of unforeseen contingencies. The tips for buying business insurance in Nigeria will guide you in making the right choices when you decide you need business coverage.

Tips For Buying Business Insurance In Nigeria

tips for buying business insurance

  1. Assess Your Risks 

Everything about insurance is about taking risks. It is possible nothing will happen to your business and it is also possible that everything will happen to it. That is the risk you have to access.

You should know that insurance companies determine the level of risk they can accept before they issue you with a policy. This is why assessing your risks is one of the tips for buying business insurance.

Also Read: Top 9 car insurance tips in Nigeria

The process of determining the risk is called underwriting by the company. They review your application and determine if they will provide all or just a portion of protection you are requesting.

The underwritten policy carries a premium and a deductible. The price you pay for the insurance is the premium while the deductible is the amount you agree to pay when making a claim.

Premiums vary among companies and it is determined by many things or factors such as business location, building type, local fire protection services, and the amount of insurance you purchase.

2. Shop Around

One of the tips for buying business insurance is to ensure that you don’t just buy from the first person you meet. You have to shop around for companies so as to have comparative benefit.

The truth is that the extent and coverage vary from company to company. Some offer specific coverage why others offer a bit of everything. More so, other companies can give you connection or direct access to the insurance or coverage of your business.

To shop around, you can use agents or you do it yourself through the various online directories or other offline channels.

3. You should consider a Business Owner’s Policy

tips for buying business insurance

Having a business owners’ package can help offset issues and it is one of the tips for buying business insurance. A business owners’ policy (BOP) combines typical coverage options into a standard package.

The beneficial part of a BOP is that it is offered at a premium that is less than what it could have been if they were paid separately. Typically, BOPs consist of covering property, general liability, vehicles, business interruption and other types of coverage common to most types of businesses.

You will also need to understand the extent of your coverage in the BOP you are considering. You may need to pay extra coverage if your business has unique risks.

4. You need a reputable, licensed agent

One of the tips for buying business insurance is that you may need to use an agent. They are called brokers and they can help you find policies that match your business requirements.

They receive commissions from companies when they sell policies. You will need to find someone reputable who will not defraud you and is committed to your needs. He has to understand the risks associated with your business.

It is important that you use licensed ones.

5. Assess Your Insurance Coverage on an Annual Basis

As your business grows, expectantly, your insurance should grow. To that effect, you should assess your coverage or insurance annually. This will help stay ahead of risks or unexpected contingencies.

Our advice to you is to get a business insurance today. The benefits are so enormous.