Business Insurance in Kenya

Business Insurance

Businesses need to be prepared in the event of a disaster. When accidents, injuries, negligence, theft or other losses occur business insurance helps you protect your assets and your business. 

Business insurance doesn’t prevent disasters from happening. Rather, it is a proactive solution that protects you from liabilities once a disaster has occurred. Insurance prevents the cost of business mistakes from leading to complete financial ruin. 

The term Business insurance isn’t actually a specific type of insurance policy. Rather, it is a term used to describe the types of insurance coverage designed for business owners and their companies. The specific policies and levels of coverage required will depend on the size and type of business you operate. You don’t need to know all the details. A qualified agent will help determine where your liabilities lie and recommend appropriate policies. But, every business owner should have a basic understanding of what coverages are available. 

Let’s take a look at the most common forms of small business insurance. 

General Liability Insurance

What does it mean to be liable? Liability is a legal responsibility to settle financial debts or obligations to those affected by a loss, typically in the form of a lawsuit, which, in total amounts to greater than the businesses is able to afford. Insurance is a standard cost of doing business, and it’s relatively inexpensive compared to the potential impact of a lawsuit. Considering that the cost of a single claim can decimate a company, it’s the smart thing to do. Business insurance exists to help pay for these liabilities. 

General Liability Insurance covers the most basic needs that are shared among all types of companies. Things like bodily injury on your business premises and physical damage caused by employees are covered by this policy. If you aren’t sure which types of insurance your company needs, you should look here first. Bear in mind. General liability insurance does not cover employee injury. Which brings us to the next common type of business insurance work injury benefits insurance.

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Work Injury Benefits Insurance

Work Injury Benefits Insurance or workmen’s compensation insurance as it used to be referred to in the past is meant to protect the interests of your employees if they’re injured on the job. It can also protect your business from a lawsuit if that employee needs additional compensation for their injuries. If you have any employees, you’ll likely need this coverage. Kenya has a comprehensive law known as the Work Injury Benefits Act (WIBA) which mandates every employer to obtain and maintain an insurance policy in respect of any liability that the employer may incur under the Act to any of their employees.

Professional Liability Insurance

Thirdly, there is professional liability insurance, also known as errors and omissions insurance. Professional liability insurance is a policy that is meant to protect professionals in the workplace. Expert advice given to a client by you or your employees may not always lead to the desired result. If your guidance is deemed inaccurate, negligent or fails to deliver the agreed-upon results, it can leave you open to liabilities. If the client is financially damaged and blames your company. Professional liability insurance is essential protection for providers of professional or expert advice. Examples of professionals who need professional liability insurance include; lawyers, architects, engineers, real estate agents, insurance brokers, accountants, financial advisors, marketing consultants, coaches, consultants and many other professionals. 

Motor Commercial Insurance 

This is motor insurance for professional vehicles and is designed to protect owners against damages arising from car accidents, fire and certain natural disasters. 

Fire Insurance

This is meant to cover the business premises and contents from fire and certain natural disasters.

Business interruption insurance

Provides compensation for your business as a percentage of lost revenue in case of a catastrophe that forces the business to shut down. 

Product Liability Insurance 

This covers physical or other harm to a customer that is caused by a product that you manufacture or sell. 

Data Breach Insurance 

Also known as Cyber Liability Insurance, it covers some of the damage in the event that your customer’s digital data is breached or stolen. 

Burglary Insurance

Covers the contents in your business premises in the vent they are stolen or damaged in a robbery.

All Risks Insurance

Provides “all risks” coverage for contents such as electronic equipment in the event of loss or damage within the premises or at any other location.

Money Insurance

Provides coverage for money in the event of loss while in the business premises or in transit to and from the bank.

Fidelity Guarantee Insurance

All other insurance policies do not cover theft by your employees. To cover this risk, you need fidelity guarantee insurance.

Business Insurance Package

The above are just a few examples of insurance that a typical business would need. To simplify administration and save money, you can consolidate your coverage in a Business Insurance Package. Most insurance companies offer this type of packaged policy when you can select the insurances you want need and leave out those you don’t need. Buying your business insurance as a package is cost-effective, easier to manage and can be customized to your businesses specific needs. 

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Your business needs insurance. This fairly modest investment will protect your business assets from the inevitable liabilities that arise from mistakes and disasters. Now that you’ve seen the basic types of business insurance policies, we recommend you speak directly with our Insurance Gurus to help you get the best rate. Contact us or request a quote today. 

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