For many Nigerian entrepreneurs, every naira counts. Building a business from the ground up often means late nights, early mornings, and difficult decisions about where to invest limited resources. In that context, insurance can feel like an unnecessary expense or something to think about “later.”
But here’s a different perspective: business insurance isn’t just another bill; it’s a strategic financial tool that protects your progress and strengthens resilience.
Why Leading Companies Always Have Business Insurance
Across Nigeria and around the world, the largest companies rarely operate without business insurance. It’s not because they have surplus cash to spend; it’s because they understand a critical reality: setbacks whether fires, floods, theft, or unexpected disruptions can erase years of hard work almost overnight.
Take this example: In 2024 alone, AXA Mansard paid out over ₦8 billion in claims to corporate clients across health, property, and business interruption insurance. That’s money that kept businesses running when disaster struck, from warehouse fires to vandalised offices and beyond.
Think back to the major disruptions we’ve all lived through:
- The xenophobic attacks that affected Nigerian businesses operating across borders.
- The COVID-19 pandemic, which forced thousands of SMEs to halt operations.
- The EndSARS protests, which led to vandalism, looting, and severe property loss.
Many of the businesses that bounced back quickly didn’t just “get lucky”; they had insurance. Now, these disruptions don’t happen only when there are big issues, we experience these risks every day.
For example:
- According to NEMA, over ₦50 billion worth of goods are lost to market fires in Nigeria every year.
- In 2022 and 2023, the Federal Ministry of Humanitarian Affairs reported that floods displaced thousands of business owners and caused over ₦100 billion in damages.
- Burglary and break-ins, especially in open markets and commercial clusters, continue to hurt small business owners who have no safety net.
And still, many business owners would rather take chances than prepare for the possibility that something could go wrong. But here’s the good news: Protecting your business from these risks doesn’t cost as much as you think. Let’s break it down,
- Fire and burglary insurance for as low as ₦4,333 per month and you can even have flood protection added to your plan
- Business interruption cover, which helps keep your staff paid and your operations stable after a disruption; all tailored to your size and risk level
Now, let’s put that in better perspective:
| Risk | Potential Loss | Monthly Premium (from) |
| Fire + Flood Damage + Burglary + Health + Life, etc | ₦5 million+ | ₦4,333 |
| Fire + Flood Damage + Burglary + Health + Life, etc | ₦13 million+ | ₦9,166 |
If you look at this, you will realize that this amount is less than what many businesses spend on data, delivery fuel, or even replacing a single stolen phone. But the coverage it gives you? Worth millions.
The true value of business insurance lies in its role as a stability enabler. It allows businesses to:
- Take calculated risks and pursue growth opportunities
- Avoid draining savings or emergency funds when setbacks occur
- Build resilience so challenges don’t mean starting over
- Focus on scaling the business with confidence
These advantages are what leading companies have leveraged for years to secure their progress. Now, more SMEs are recognising that business insurance is not money lost but value preserved.
As a business owner intent on growth and long-term stability, the question shouldn’t be: “Can I afford insurance?” The real question is: “Can I afford not to have it?”
Always remember that business insurance is more affordable than most imagine and far more costly to ignore.
