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Small and Medium-sized Enterprises are the bedrock of Nigeria’s economy, with over 40 million SMEs contributing up to 50 per cent of the nation’s GDP. Yet, SMEs are most vulnerable to adversities commonly experienced in business because they are uninsured. This reaffirms the 2019 report by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) that only 35 per cent of SMEs had a form of business insurance.
In a recent webinar hosted by Coronation Insurance and titled “Business Protection Insurance: What Every Entrepreneur Should Know”, the unending risks of operating an uninsured business were discussed in depth, alongside the unexplored insurance products that could mitigate those risks.
The founder of Caladium Consulting, Ayo-Bankole Akintujoye, delivered a mentally stimulating keynote speech that used relatable examples to highlight the legal, financial and continuity risks business owners unknowingly take on when their business is uninsured.
“Hope is not a strategy. Entrepreneurship comes with risks and the more you protect yourself against those risks, the likelier you are to succeed.”
The webinar’s enlightening panel discussion, moderated by Linda Ochugbua, featured valuable contributions from Faith Godwin, Felix Boateng and Flora Mbeledeogu.
Felix Boateng, Head of Underwriting, Coronation Insurance Ghana, spoke about low business protection insurance penetration amongst SMEs in Ghana and highlighted the role of entrepreneurs in ensuring that their businesses can be insured.
“Fire has been a challenging peril for the Ghanaian market. Every year, we experience fire incidents. Insurers have noticed that those market areas are usually uninsurable because of the materials used in building those structures.
An ongoing conversation amongst insurers is to create products that can serve businesses in those high-risk areas and increase awareness about the risks their business faces there.”
Businesses with insurance have a 70 per cent chance of survival and continuity after a catastrophe compared to their uninsured counterparts, who cannot make a comeback.
If an uninsured business continues operations after an unfortunate occurrence, it usually closes permanently within a year because the business is no longer viable and sustainable on the owner’s funds. Business owners can prevent this from happening.
Faith Godwin, Team Lead of Bancassurance, Coronation Insurance, urged the webinar’s attendees to be proactive and take advantage of Coronation’s free risk consultation to gain professional insight into the potential risks associated with their business and adopt products that address those risks. Watch the full webinar on business protection insurance by Coronation Insurance to learn more here.
For more information or to explore our Business Protection Insurance Plan, email us at info@coronationinsurance.com.ng or call 02-01-2275475 | 02-01-2275476.
