Why would you get insurance?

Insurances are safety nets, a way to manage risks 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. 

Are there mandatory insurances?

Compulsory insurances are those classes of insurance made compulsory by law, with the objective of providing protection to third parties and the general public. It is important to state that not all insurance products are compulsory. The following 6 types of Insurance are compulsory in Nigeria:

• Builders Liability – under the Insurance Act 2003/under the Lagos State Building Control Law 2010 (for all owners or contractors of buildings under construction (more than 2 floors))
• Occupiers Liability – under the Insurance Act 2003 and Lagos State Law (for all owners or occupiers of public buildings, whether private or public)
• Employers Liability – (Group Life) – under the Pension Reform Act 2004 (for all employers of labour with more than 4 employees)
• Employers Liability – under the Workmen’s Compensation Act 1987
• Healthcare Professional Indemnity – under the NHIS Act 1999 (for all medical professionals, institutions and centres)
• Motor 3rd Party Liability – under the Insurance Act 2003 (compulsory for all owners of Motor vehicle whether private or commercial)

The list of available service providers can be found in 22 Lists of Licensed Insurance Companies in Nigeria