SMEs play a big role in the Nigerian economy and economies around the globe. They outnumber large companies by a wide margin and employ many more people. SMEs are important for economic and social reasons, given the sector’s role in employment.
SMEs are also said to be responsible for driving innovation and competition in many economic sectors. In Nigeria, most micro businesses are often owned and managed by sole operators.
Every business comes with a certain amount of risk. Highlighted below are number of risks business face daily:
- Hazard: This includes fire and other property damage, windstorm and other natural perils, theft and other crimes, personal injury, business interruption diseases etc.
- Financial Risks: Price (e.g. asset value, interest rate, foreign exchange, commodity), Liquidity (e.g. cash flow, call risk, opportunity cost), stand the risk of being affected by inflation, purchasing power hedging and other economic factors.
- Operational Risks: Business operational factors such as human resources, product development etc if not properly managed can be a source of challenge in sustaining the business.
- Strategic Risks: Businesses are also exposed to reputational damage such as trademark/brand erosion, fraud, unfavourable publicity, Competition, Customer wants Demographic and social/cultural trends Technological innovation Capital availability Regulatory, political trends and so on.
Although pitfalls and challenges can’t be avoided, they can be mitigated with the proper precautions, planning and Insurance coverage.
In Nigeria today, a lot of small & medium enterprises lack insurance awareness. Insurance helps to address the many risks a business is exposed to. Regardless of the kind of business it is, the business requires insurance coverage that will ensure that they achieve their business goals.
AXA has developed an insurance solution (Business Insurance Plan) that provides complete protection to business owners, business content and their employees. This cover will not only protect the business against situations of unforeseen circumstances but also provide cover for man-made actions. This will thereby ensure business continuity and longevity.
The Business Insurance Plan (BIP), is a one-stop insurance solution that addresses the business risk exposures of small and medium enterprises. It is a pot-pourri of several existing AXA Mansard insurance products bundled together. These products include Business Content, Group Personal Accident, SME Life, Health Care Public Liability and many more.
At AXA, we believe every business owner should be able to run their businesses with full confidence that they can achieve their goals and that their dreams and aspirations are fully supported and protected.
AXA Mansard provides you with great financial solutions including protection, asset management and health insurance. For more information, call us on 0700 AXA MANSARD (0700 292 6267273) or send an email to ccare@axamansardhealth.com
