Business insurance for next storm
MANY BUSINESSES ARE carried away by high earnings that they fail to prepare for the rainy days. In other words, being myopic has blinded a lot of businesses from...
MANY BUSI NESSES ARE carried away by high earnings that they fail to prepare for the rainy days. In other words, being myopic has blinded a lot of businesses from tapping into the opportunity presented in form of insurance to guarantee business sustainability in the case of unfavorable events.
Insurance is a financial product that eliminates or reduces the cost of loss or effect of loss caused by different types of risks in the cause of business transactions. It helps to keep businesses alive by ensuring continuity after disrupting events such as fire incidence, theft of assets and goods, lootings, cessation of business due to crises, amongst other natural and man-made crises
In addition to protecting individuals and businesses from potential risks, the insurance sector also plays a significant role in contributing to the general economic growth of the nation by providing stability to the functioning of businesses as well as generating longterm financial resources for the industrial projects.
In the opinion of experts, insurance business coverage guarantees the continuity of business after crises. “The insurance market in Nigeria not only provides insurance coverages to enable businesses to stay resilient but also ensures that when something goes wrong, claims are paid to enable those businesses remain open, employ people, pay taxes and develop the communities they are located,” Ekerete Ola Gam-Ikon, a consultant in management, strategy and insurance said.
The year 2020 would continue to be remembered in history for global damages to businesses and to organisations as the year saw a great number of companies record losses in business dealings, myriads of lost jobs, as well as the extinction of businesses.
According to the UN International Labour Organisation (ILO), job losses or reduced working hours due to the impact of the COVID-19 pandemic cost the world the equivalent of 255 million jobs in 2020 leading to the massive impact of nearly four times the number lost during the 2009 global financial crisis.
Coupled with Coronavirus pandemic, Nigerians and many businesses in the country suffered losses arising from the #EndSARS protest which saw billions worth of properties destroyed and other market forces experienced in 2020 which crippled the economy.
But thanks to insurance firms that came to the rescue. Underwriters such as Leadway Assurance and others who packaged insurance products for businesses in the form of; business office and content insurance, occupiers’ liability insurance for visitors, motor vehicle insurance, employees’ life insurance, other assets and liability insurance, amongst others, have helped erstwhile insured businesses restore their peace of mind while many uninsured businesses have struggled to rebound and some have met their demise after the year’s crises.
However, while the large percentage of insurance coverage is channeled towards protecting the corporate body, insurance companies still need to reach out to more businesses, especially those in the local market by utilizing the large market and by the large Nigerian population through providing insurance to protect businesses from fire, flood, theft and hoodlum crises and other disasters that have characterized the country in recent times.
“Insurance market can do more by opening up access for businesses especially small and medium enterprises to learn more and modernize their risk management processes for the overall advancement of our economy,” Gam-Ikon said
Worthy of note is the fact that every business is not safe from crises – be it financial or physical. This is because human life is generally characterized by unpredictable events that come in the form of roses and sometimes as thorns. However, we are quick to embrace optimism that we forget the other side of the coin. But as the clock continues to tick clockwise, we are hit by the reality of what the next couple of minutes unfold.
Bottom-line
Events would come and go but what would continue to linger and shape the future