How To Apply For Insurance For Your Goods, Shops, And Business In Nigeria As A Businessman
Applying for insurance coverage is an important step every business owner should take. However, one reason why many people shy away from getting an insurance plan for their business is that they lack the knowledge on how to go about it. Well, that has been sorted out now. This is because in this article you would be reading about the steps on how to apply for insurance. This article would be centered on uncovering all that you need to know on how to apply for insurance for your goods, shops, and business in Nigeria as a businessman. Let’s go through the steps on how to do that already;
Step 1. Know The Insurance Plan That Suits Your Business
Knowing the insurance plan that suits your business is very important in applying for insurance for your goods. To understand what is meant here, it would not be suitable for you to get an insurance plan on fire if you own say, a retail shop with no inflammable or have any electrical connection in your shop.
So, you need to identify the potential risk that may be affected by your business for you to get an insurance plan suitable for it. Say you own a gas refill station for example, as a wise businessman, you would want to get fire insurance, burglary insurance, and employer’s liability insurance for that business. This is because these are the kind of risks that may likely affect the business and lead to loss. So, it would be wise on your part to cover your business with a plan that would be suitable for your business.
Step 2. Search For A Reliable Insurance Company
After you’ve analyzed the potential risk and losses your business may be exposed to, the next step in how to apply for insurance for your goods, shop, and business in Nigeria as a businessman is to search for a reliable insurance company. An insurance company would be in the best place to provide cover for your business be it small or large.
When searching for an insurance company, look for one that has a reputable standing in the insurance industry such as AXA Mansard Insurance or any other insurance company. Look out for how they charge monthly, the rate at which they respond, and many other factors.
During this process of searching, there would be many insurance companies coming to advertise their business to you. Don’t just rush to register with anyone. Take your time to do a thorough background search on them to know the pros and cons of registering your businesses with them.
MUST READ: Best insurance companies for shop owners and businesses in Nigeria
Step 3. Register Your Business
After you’ve made a diligent search for the type of insurance best for your business, there’s no need to wait. You can go ahead to register. While registering your business under the umbrella of the insurance company, do well to ask the agent or any official of the insurance company for help.
This is because you may not be very familiar with the insurance terminologies. So, you mustn’t make errors while filling out the form you would be given.
If possible, carry along with you all documents that would be needed for the registration and verification process. You don’t want to be left stranded, so this step is important.
Step 4. Pay Your Premium
Premium may be defined as the amount paid for an insurance policy. For instance, if you paid for your business against fire or burglary, you would pay a particular amount of money each month or year against that. This premium helps the insurance company to have the resources needed in the event of any loss experienced as a result of the hazard covered against.
The downside of not paying your premium is that your insurance company may not be able to compensate you when you suffer a loss. Of course, no business owner wants that.
Step 5. Look Out For Any New Updates To Your Insurance Policy
This is where most business owners fall short when they apply for an insurance plan. They tend to not pay attention after paying the premium. Most of the time, they feel that the only job of the insurance company is to collect their money. Well, there’s more that an insurance company does. Only by reviewing your insurance policy, you would be able to know the status of your insurance plan and other updates on your insurance plan. If you already have an insurance plan, try asking for your insurance policy the next time you speak with an official 9f your insurance company.
FAQs
What type of insurance covers inventory?
The type of insurance that covers inventory is property insurance. This type of insurance come to play when there is damage to the building of a business, expensive equipment, or other sorts of inventory.
Who regulates the insurance business in Nigeria?
The National Insurance Commission (NAICOM) is in charge of the regulation of insurance activities in Nigeria. They are backed up by the Nigerian constitution to control the activities of an insurance body operating in Nigeria.
What is the purpose of insurance in Nigeria?
The purpose of insurance in Nigeria is to provide cover for the insured in the event of a loss to a business. As a result, a premium is paid to the insurance body so that appropriate compensation can be made when losses occur.
What is usually covered by insurance?
You can cover several things with insurance. Life can be covered by insurance, a business can be also covered, and a vehicle can be covered, to just mention just a few.
What are the steps in getting insurance coverage?
To get insurance coverage for your business, you need to first, identify the potential risk that may occur to your business, choose the best insurance company, pay a premium, and check your insurance policy annually.
Conclusion
To get the best services and premium rates, you must go through the appropriate steps when applying for insurance. Well, as regards that, you’re not in the dark any further. As this article titled How To Apply for Insurance for Your Goods, Shops, and Business in Nigeria as a Businessman has provided much-needed information on that. All that is left on your part is to follow the steps accordingly and apply them.
