Why insurance? 

Insurances are safety nets, a way to manage risk of loss. Buying an insurance means transferring the cost of potential loss to the insurance company in exchange for a fee, known as the premium. Commercial insurances – insurances aimed at protecting and providing safety nets to businesses, employers and employees – are crucial in protecting enterprises and companies against risks of business failure. 

What are some recommended insurance providers for Kenyan entrepreneurs?

Recommended by TUKO, some of the best insurance companies in Kenya are:  

AAR Insurance Kenya is one of the oldest and best insurance companies in Kenya. The company provides many insurance solutions, including travel insurance, personal accident cover, individual and family medical plans, and business enterprise medical plans.

AIG Kenya Insurance Company one of the largest general insurance companies in the world. It has grown to become one of the leading insurance companies in Kenya. Businesses can get an array of insurance solutions such as property, aviation, and marine insurance. The company also covers business liabilities and has an array of financial lines to protect both SMEs and large corporations.

British-American Insurance Company Kenya Limited (BRITAM)  is one of the best life, general, and micro-insurance companies you can find in Kenya. Britam is also the leading provider of cyber insurance. 

Is there any mandatory insurance I need to get? What are they?

If your business has employees, Worker's Injury Benefit Act (WIBA) insurance will be mandatory. In addition, as advised by Allianz, you might want to consider the following types of insurance for your business and personnel:

Work injury benefit act (WIBA) - Covers if an employee is accidentally injured while working and in the event that you will be required by law to compensate him or her.

Property insurance - Covers your business’ physical assets like the premises of business e.g. office and warehouse, the vehicle, equipment and furniture and fittings. It cover damages caused by fire, floods, typhoons, earthquakes, lightning, terrorism and riots and strikes to asset necessary for revenue generation.

Consequential loss - Covers your business from loss of profit due to business interruption as a result of causes under the fire and peril policy.

Burglary insurance – This insurance will compensate for losses or damage to property contained in your business premises caused by the act or attempt of burglary or robbery.

All risk insurance -This cover will provide your high valued movable equipment from theft, loss or accidental damage and incidents of natural perils such as earthquake, fire floods etc.

Product liability – This insurance will help protect your business, i.e. restaurants, food outlets, against claims of personal injury or damage caused by your products.

Professional indemnity – This insurance will cover the legal fees and compensation in case the client wins a case against you, due to the technical nature that has a risk of error and omission during performance of service that makes your customer incur some financial loss.