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Benita had always been cautious with her finances. She diligently saved, invested wisely and made sure her business was running smoothly. But there was one aspect of her financial security she had never truly considered—insurance. Like many others, she believed that insurance was an unnecessary expense, something to think about only if trouble arose. Her approach however changed when an unexpected fire occurred at her boutique.
The Importance of Risk Awareness
Risk management through insurance is an afterthought for many individuals and businesses. People assume that disasters only happen to others and that they will somehow be lucky enough to avoid the worst-case scenario. But as Benita painfully learnt, risks are a reality of life and business and without adequate preparation, a single event can lead to financial ruin, delay in returning to normal operations, or even a complete collapse of business.
Risk awareness is more than just knowing that risks exist; it is about actively preparing for them by way of proactive management. It involves understanding potential threats, assessing vulnerabilities, and taking proactive steps to mitigate losses. In Benita’s case, had she considered the risks her business faced, she would have realized that burglary, fire and theft were real threats that could disrupt her operations.
With the right insurance policy, she could have minimized her financial losses and gotten back on her feet much faster.Unfortunately, Benita’s experience is not unique.
Many business owners, homeowners, and even professionals operate without adequate risk management strategies. The consequences of this oversight can be devastating, leading to financial hardship, emotional distress, legal liabilities and even untimely death due to shock from such experience.
The Role of Insurance Education
One of the biggest challenges in fostering a culture of risk awareness is the lack of insurance education. Many people share Benita’s initial perspective—seeing insurance as an avoidable expense rather than an essential financial tool. This mindset often stems from myths, misinformation, or a simple lack of understanding of how insurance works.
Insurance education plays a critical role in changing these perceptions and ensuring that individuals and businesses make informed decisions. Effective insurance education helps people understand:
*The Purpose of Insurance – Insurance is not just a cost; it is an investment in financial security. It provides protection against unexpected losses, ensuring that people can recover quickly and continue their lives or businesses without crippling financial burdens.
*Types of Risks Covered – Many people do not realize the wide range of risks insurance can protect against, including fire, theft, burglary & housebreaking, business interruption, health emergencies, and even liability claims. Proper education ensures that people select policies that adequately cover their specific needs.
*The Impact of Underinsurance – When individuals insure their assets for less than their actual value, they risk receiving only partial compensation in the event of a claim due to underestimation of value and thereby the claim benefit.Understanding the principle of average and its impact on claim payouts can prevent costly mistakes. The principle states that if you underinsure your property, you will bear a proportionate share of any loss, meaning the insurer will only pay a fraction of the claim based on the underinsured amount.
*How to Choose the Right Policy – Insurance policies come with different terms, coverage limits and exclusions. Education empowers consumers to read and understand policy documents, ensuring they get the right coverage without surprises during claims processing.
Had Benita received the right insurance education before the fire, she would have seen insurance as a necessity rather than an optional expense. She would have understood that a fire outbreak, although unlikely, was a risk that she needed to be prepared for. Instead of starting from scratch, she could have used her insurance payout to reinstate her store while continuing her business without major financial strain.
The Role of Coronation Insurance in Risk Awareness
At Coronation Insurance, we recognize that true financial security starts with knowledge. Hence, we are committed to building a culture of risk awareness through appropriate insurance education, engagement and tailored solutions.
*Customer Education: From the moment potential clients reach out to us, we ensure they are well-informed about their insurance needs. We take the time to explain policies in simple terms, helping customers understand the importance of adequate coverage.
*Continuous Engagement: We do not just sell solutions; we build relationships. We use regular communication, educational webinars and one-on-one consultations, to guide our clients in making the best insurance decisions for their personal and business needs.
*Tailored Solutions: Individuals and businesses have unique risks. At Coronation Insurance, we offer customized policies that ensure clients are neither overinsured nor underinsured. Our goal is to provide the right balance of coverage to match financial capabilities.
*Comprehensive Support: When claims arise, our clients are not left to navigate the process alone. We stand by them every step of the way, ensuring that they receive the support and compensation they are entitled to.
Creating a Future of Risk-Conscious Individuals and Businesses
Benita’s experience highlights the importance of being proactive about risk management. Unexpected events can disrupt lives and businesses, but with the right knowledge and preparation, their impact can be minimized. By embracing insurance education, individuals and businesses can turn potential setbacks into opportunities for resilience and growth.
At Coronation Insurance, we are committed to equipping our clients with the knowledge and protection they need to confidently navigate unexpected situations or events. Through continuous engagement/education, tailored solutions, and unwavering support, we help create a future where financial security is not left to chance but built through informed decisions. A well-informed approach to risk is not just about securing today—it is about building a safer and more sustainable future for all.
To read more articles from Coronation Insurance Plc, please visit https://coronation.ng/insights/
For more information, connect with us at contactcentre@coronationinsurance.com.ng or call 02-012774500 | 02-012774566 | 02-012774577.
