Allianz Kenya Small Business Insurance Guide

Many Kenyans are opting for  Small Businesses or self-employment as income-generating ventures thus the need for literacy on insurance.

Even though Small and medium businesses(SME’s) contribute by 70%  to the Country’s  GDP, most Kenyans do not fully understand the need for insurance for their small businesses with a good number assuming that insurance is for the big guys in the business.

According to  Allianz Kenya, to be effective, SME’s can opt for; Work injury benefit act(WIBA), Fire and Peril Insurance, Consequential loss, Burglary insurance, All risk insurance, Product Liability, and Professional indemnity.

WIBA  covers an employer against the liability of compensating an employee who accidentally gets injured while working.

Fire and peril insurance, on the other hand, is property insurance as it covers a business’s physical assets like the premises of business e.g. office and warehouse, the vehicle, equipment and furniture, and fittings.

The insurance covers damages caused by fire, floods, typhoons, earthquakes, lightning, terrorism, and riots and strikes to assets necessary for revenue generation.

Apart from those, Consequential loss insures businesses from loss of profit due to business interruption as a result of causes under the fire and peril policy.

On the other hand, burglary insurance is an effective policy that compensates for losses or damage to property contained in business premises due to acts or attempts of burglary or robbery.

The other kind of insurance that SME’s should consider is All risk insurance which not only protects movable equipment such as laptops, cameras, tripods, desktops,s or even mobile phones but also protecting the high valued equipment from theft, loss, or ​ accidental damage and incidents of natural perils such as earthquake, fire floods.

The Product liability insurance is relevant to Restaurant, food outlets, and organic cosmetic manufacturers as it gives a legal claim to bring down business built out of passion. Product insurance protects businesses against claims of personal injury or damage caused by the products therein.

Finally, Professional indemnity insurance ensures that specialized professionals in SME’s such as doctors, architects, engineers, accountants, or even IT specialists, are protected from financial losses by customers that may arise out of omissions because of the technical nature of their jobs.

. These omissions could lead to a lawsuit by a client alleging breach of duty or negligence. This cover will protect you from this claim and l cover the legal fees and compensation in case the client wins the case against you.

Philly Opere.