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Types of Business Insurance for Start-ups in Nigeria

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The Nigerian Insurance industry is a massive industry covering accidents from auto, oil, fire, gas, and so on. They also provide insurance plans that cover for SMEs because these are the backbone of the Nigerian economy. There are various wide range of insurance policies and risk advisory services in Nigeria that are designed to meet your unique needs and add value to your business thereby minimizing risk and maximizing support.

Some of these Insurance Policies for Businesses in Nigeria are:

1. General Liability Insurance

General Liability insurance plan covers your business against damage and losses resulting from fire, explosion, storms, floods, riots, theft, strikes, and other dangers that may occur in your line of business. When your business is under this plan, your insurer will pay back all your losses, giving you the capital you need to revive your business.

2. Workers Compensation Insurance

This type of business insurance policy helps protect your employees if they get injured on the job. The insurance covers the costs of their medical bills as they stay off work for recovery.

3. Employment Practices Liability

This type of business insurance covers your business from claims of discrimination, harassment, wrongful termination or any other forms of claims from employees.

4. Professional Liability Insurance Plan

Professional Liability Insurance Plan protects a business owner from claims or legal liabilities from any of their clients. This insurance covers a business against negligence claims due to harm that results from mistakes or failure to perform.

5. Goods-In-Transit Insurance Plan 

This type of insurance covers for businesses involved in the hauling of goods from one city to another. It usually covers for incidents that has to do with lorries and cargo trucks spilling over their contents on the streets. It protects your goods from dangers on the road  like fire, theft or accidental damage while the goods are being loaded, unloaded or housed in temporary warehouse.

6. Product Liability Insurance Plan

This insurance protects small businesses from liabilities, claims or damages that may arise from the use of its products or sale on the general market.

On a final note, protecting your business assets and inventory towards unforeseen circumstances is something every business owner in Nigeria should consider. Ensure you have a proper understanding of the underlying conditions of any business insurance contract you intend to sign as this will help you understand how much risk your business is exposed to and also that you have an easy claim in case of any unfortunate event of any loss in the future.

Good Luck!!

How to Get Business Insurance in Nigeria

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To build a sustainable business as a start-up or growing business especially in this economy downtown and pandemic era, risk management must be at the heart of your planning and execution. It is critical to take into consideration insurance and place it as a priority in your business budgeting and planning.

Here’s how you can get a Business Insurance in Nigeria as an Entrepreneur:

1. Assess Your Risks

Figure out the kind of accidents, natural disasters, or lawsuits that could occur and be devastating for your business.

2. Pick the Type of Business Insurance You Need

Ensure you choose an insurance that makes sure both your assets and your business assets are safe.

3. Look for a Reputable, Licensed Insurance Agent

With the help of a licensed insurance agent, you can get business insurance policies that match your needs.

4. Compare Prices

Ensure you compare the prices of various Insurance companies your Insurance Agent recommends just so you could get the best value for your money. However, prices and benefits varies significantly, hence, you should compare terms, benefits and even the rates for each of the insurance offers.

 

Watch out for our next article on the types of business insurance available for startups and growing businesses in Nigeria.

Top 10 Insurance Companies in Nigeria

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In our post today, we bring you rankings of the top 10 insurance companies in Nigeria to help you choose the best insurance company for your situation.

1. Leadway Assurance Company:

LEADWAY Assurance (founded in 1970) offers insurance services in General business insurance and Life & Pensions. The Company offers to its customers allied financial services such as; personal insurance, business insurance, and asset management.

2. AIICO Insurance Plc

AIICO Insurance Plc is an insurance, pensions management, and asset management Group established in 1963. Their focus is on, General insurance and special risks, Life assurance and annuity, Health insurance, Asset management, and Pension management.

Their policy offers are as follows:

  • Flexible endowment plan
  • Electronics equipment policy plan
  • Income investment plan
  • Three payment plan
  • Travel insurance
  • corporate saving plan
  • Education investment plan

3AXA Mansard Insurance Plc

The Company offers life and non-life insurance products and services to individuals and institutions across Nigeria.

Their service offerings are:

  • Savings and investments
  • Life insurance
  • Annuities
  • Motor Insurance
  • Life insurance

4. Custodian and Allied Insurance

Custodian and Allied insurance company provides a broad range of insurance plans. Such as:

  • Immediate annuity plan
  • Tuition protection plan
  • Auto insurance plan
  • Investment plus plan
  • Travel insurance plan
  • Capital plan

5. Consolidated Hallmark Insurance

The company service offers includes:

  • Home Insurance
  • Motor 3rd Party
  • Motor Comprehensive
  • Personal Accident
  • All Risks Insurance
  • Burglary Insurance
  • Goods-In-Transit
  • Travel Insurance
  • Aviation
  • Bonds Insurance
  • Consequential Loss
  • Contractors-All-Risk
  • Professional Indemnity
  • Machinery Breakdown
  • Plant-All-Risk
  • Marine Insurance
  • Money Insurance

6.  Cornerstone Insurance Plc

Cornerstone Insurance company was incorporated as a private limited liability company on July 26, 1991. Eventually, it became a Public Limited Liability and was quoted on the Nigerian Stock Exchange(NSE) in 1997.

They offer the following services:

  • Home insurance plan
  • Life insurance plan
  • Annuity plan
  • Marine insurance plan
  • Investment plan
  • Halal Takaful plan
  • School fee guarantee plan
  • Goods in transit plan
  • Travel insurance plan
  • Motor insurance plan
  • Gadget protection plan

7. NEM Insurance Plc

The company was incorporated in 1970 as a Nigerian company in compliance with the Companies Decree of 1968 and became quoted on the Nigerian Stock Exchange in 1989.

Their policies include:

  • Marine Insurance
  • Motor insurance
  • Goods-In-Transit
  • Aviation and Gas insurance
  • Engineering and Bonds

8. African Alliance Insurance Plc

African Alliance Insurance plc., was incorporated on May 6, 1960. The insurance Plc company has a trustworthy reputation in Life Assurance.

They offer the following services:

  • Individual assurance plan
  • Annuity assurance plan
  • Direct debit form plan
  • Investment assurance plan
  • Group life assurance plan
  • Esusu plan

This insurance company was incorporated as a Private Limited Liability Company on April 15, 1992, and later converted to a Public Liability Company on May 11, 2007. The company is licensed to do both Life and General Businesses. These include plans such as Motor Insurance, Fire and Special Perils, Oil & Gas, Life & Pension, and Travel Insurance.

10. Industrial and General Insurance Plc

The Company got registered as a public limited liability company in 2007. After that, they commenced operations in Life and General insurance, in addition to Pensions and Special Risks in January 1992.

The policies they offer includes:

  • General Business Insurance plan
  •  Health Insurance Plan
  • Group Life Products plan
  • Mobile Phone Insurance Plan
  • Aviation Insurance plan
  • Engineering Insurance plan
  • Oil & Energy
  • Marine Insurance plan

 

How To Make Money on Amazon

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Here’s how you can make money on Amazon as a side gig apart from buying stuffs there.

Kindle Direct Publishing

If you’re an aspiring or published author looking to expand your audience, you can earn up to 70% royalty on sales to customers. Kindle Direct Publishing lets you publish eBooks and paperbacks for free, which is Amazon’s self-publishing service. Amazon gives you control over your publishing rights and listing prices.

Amazon Services

Amazon offers Services for home and businesses, providing a way for workers to make money on their platform. But you need to have general liability insurance to use this offering and you’ll also need to pay a revenue share with Amazon if you take a job through their platform. However, Amazon does not charge to list your services or for advertising.

Amazon Associates

If you’re someone who runs a website or blog that generates good traffic, you can potentially earn income using Amazon Associates, which is Amazon’s affiliate program. You get to insert a link or advertisement to certain products on Amazon and get paid when people click through and make purchases. Amazon offers up to 10% in associate commissions from qualified purchases and programs.

Amazon Merch

If you’re into drawing or designing artwork Amazon Merch service is a great way to simplify the process of selling your designs. All you have to do is create an account, upload your image, optimize your product page, and set a list price. Amazon then prints what’s sold, and ships it quickly via Prime. You can earn monthly royalty payments for whatever you bring in.

Amazon Web Services

Amazon Web Services (AWS) is one of the world’s leading cloud platforms offering more than 170 products across a global system of data centers. AWS can give you the flexibility and control to launch an enterprise-grade business right from your home. You can use AWS to host professional-grade services like apps and websites. So, if you have an idea for a business, you can use this service to power your platform and store its data. It is cost-effective, secure, and incredibly scalable.

Amazon Retail Arbitrage

You can also make money on Amazon by picking up items at retail stores like the Home Depot and Walmart and sell them for a higher profit online.

Amazon Flex

Amazon Flex is a program that lets you use your own vehicle to make deliveries. It involves setting aside a time that you want to work using their app, picking up items from Amazon fulfillment centers, and dropping them off at various destinations.

Mechanical Turk

Mechanical Turk (MTurk) is the brainchild of Amazon founder Jeff Bezos. MTurk is a platform that allows workers to apply their skills to available tasks in the MTurk marketplace. The downside of this is that there isn’t much money to make on MTurk. But it’s another way to diversify your income.

 

“You can only be financially free when your passive income exceeds your expenses.” T. Harv Eker

 

 

Having Faith During a Financial Crisis

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Tough times force us to ask some deep questions. Whether you believe in God or not, you’ve got to at least admit that you don’t have all the answers. We need guidance and hope that’s bigger than ourselves.

Faith is essential at all times, but it’s really important to rely on faith during difficult and trying times. Faith reminds us that God’s in control, and that we need to rely on Him to see us through, even when the path ahead is dark and unsteady. He’s steady, and He’s ready, willing and able to sustain us through anything.

What does the Bible have to say about economic hardship? Here are five principles for trusting God with your money.

1. Take your fear and anxiety to God—He can handle it.

All of us are fighting fear these days. Maybe you feel buried by anxiety from the moment you open your eyes in the morning. Will my loved ones get sick? How will I make ends meet after losing my job? Will the economy ever recover? Some of us entertain those thoughts and start to spiral, and others of us take the ostrich approach—burying our heads in the sand and waiting until it’s over!

But there’s a third way to deal with fear, and it’s the best one: Hand off your anxieties to God.

The first thing we need to get straight is this: God cares deeply about our suffering, and He invites us to cast our burdens on Him (1 Peter 5:7). Did you catch that? God’s not far away, kicking His feet up on some heavenly footstool, shaking his head, and hoping that it works out for us. He’s near to those who are broken and confused. He wants to take your anxiety from you. The question is, are you allowing Him to lift your burden?

You can trade your fears for God’s peace if you’re willing to lay out your requests to Him (Philippians 4:6–7). His peace is powerful! It’s the only things that will truly loosen your tight chest when you feel like you can’t take another breath. Instead of white knuckling your way through your anxiety and playing out millions of scenarios in your mind, let it go, lay your requests before God, and feel Him lift that heavy load off your back.

Take your worries to God. He’s big enough to handle them.

2. Trust God with your money—He owns it anyway.

There’s an old-timey word that we want to introduce to you: stewardship. It basically means that you’re entrusted to take care of something that belongs to someone else. Managing a team of people or resources at work is an example of stewardship because you’ve got someone to answer to.

Can you see where we’re headed with this? Yep—you’re a steward of the money and resources that God’s given you. Now, of course, you must take personal responsibility and work hard. In fact, because God has trusted you with a job, you better take it seriously! But at the end of the day, your ability to earn money and build wealth is given to you by God, as we see in this verse:

You may say to yourself, “My power and the strength of my hands have produced this wealth for me.” But remember the Lord your God, for it is he who gives you the ability to produce wealth. Deuteronomy 8:17–18 (NIV)

 

You can trust God with the money He’s given you because He’s the real owner of everything under the sun! He’s the ultimate source of our security. As 1 Timothy 6:17 (NIV) says, you shouldn’t put your hope in wealth, but instead, “hope in God, who richly provides us with everything for our enjoyment.”

3. Recognize your dependence on God.

So, if God made and owns everything (John 1:1–3), and He entrusts us as His stewards, then that means we can depend on Him to provide. So, we have to ask ourselves, Do I believe that He is good? Will He take care of me?

Let’s take a look at this passage from Matthew that Jesus taught His followers in one of His most famous sermons.

Therefore I tell you, do not worry about your life. . . Look at the birds of the air; they do not sow or reap or store away in barns, and yet your heavenly Father feeds them. Are you not much more valuable than they? Matthew 6:25–27 (NIV)

We want you to do something. Look outside your window. Hopefully you live in a place where you can see birds and hear them singing. They seem to be doing okay, don’t they? Not a single one of those birds is watching in fear as the Dow plummets. None of them are stocking up on toilet paper and hand sanitizer. We know this sounds ridiculous, but hear us on this: They’re just birds! You’re a human being who was carefully made in the divine image of God. Don’t you think He cares more about you than the sparrows and the blue jays?

God isn’t worried about supply chains and economic downturns. He feeds the birds day in and day out, and you better believe He’ll take care of his children too.

4. Practice contentment in both good and bad times.

Have you ever heard the old joke “You’ll never see a U-Haul behind a hearse?” You can’t take your stuff with you when you go! It’s tempting to work like crazy to keep up with the Joneses, piling up stuff, and chasing down the next purchase. The Bible warns us against the temptation to hoard our wealth, but instead encourages us to be “rich toward God” (Luke 12:21 NIV). This means that we use everything in our life (including our money) to honor God.

Trusting God’s provision leads to contentment—being grateful for what we have. This idea appears all over the Bible. Take this verse in Job, for example: “Naked I came from my mother’s womb, and naked I will depart. The Lord gave and the Lord has taken away; may the name of the Lord be praised.” Job 1:21 (NIV)

When you’ve placed your trust in God and what He provides, you’re free to be content with what you have right now. It helps you loosen your grip on your assets. Contentment is an incredibly important habit to practice when times are good and when times are bad. Gratitude changes your perspective because it shifts your focus from what you don’t have to what you do have.

I have learned the secret of being content in any and every situation, whether well fed or hungry, whether living in plenty or in want. I can do all this through him who gives me strength. Philippians 4:12–13 (NIV)

A relationship with God sets you free from worry and comparison. You just take it one day at a time. In times of abundance and crisis, contentment is the key to experiencing joy and gratitude.

5. Be generous to others just as God has been to you.

This is where it gets fun. If you’re applying the first four principles we’ve talked about, then you’ll be free to enjoy your money without being controlled by it. You’ll also recognize God’s outrageous generosity more and more, and you’ll want to treat others the same way!

If you have kids, think back to a time when you had a special gift for them. Maybe you surprised them with a puppy on Christmas morning, or you finally bought them their first iPhone. Most parents—even though not perfect—want to do their best and take care of their children. We find great joy in seeing their faces light up when they get something they’ve been asking for. And you know what? God has the same generous heart toward his children! He gives good things to those who ask for them, and he delights in our joy (Matthew 7:9–12).

Generosity is contagious. When you’ve received something good, it’s a natural response to overflow onto others. Being generous is a powerful antidote to fear because it forces you to get your focus off of your own needs. It forces you to put your money where your mouth is.

This is how we know what love is: Jesus Christ laid down his life for us. And we ought to lay down our lives for our brothers and sisters. . . Dear children, let us not love with words or speech but with actions and in truth. 1 John 3:16–18 (NIV)

God notices when we give, and He’s pleased by our generosity (Matthew 6:2–4). And if you’re short on cash, that’s okay. There are endless possibilities for how to be generous with your time, your talents and your friendship.

Does God Care About My Suffering?

Loss is painful. It’s real. We cannot make sense of all the evil in the world. And it’s a very human response to ask, Where’s God in all of this? Why doesn’t He do something?

But if you want to know where God is in the midst of suffering, all you have to do is picture Jesus on the cross. If you’re wondering why He doesn’t do something, then remember the work He accomplished to conquer death and bring us hope. He’s well acquainted with loss and pain. He took it upon himself to come to earth and share in all the same brokenness we experience. And because of the mission He accomplished, we can place our trust in Him and have hope that He can heal our diseases and restore our fortunes.

Even in the darkest moments, God promises to deliver his people, protect them, and ultimately, prosper them. We can trust that He will do the same for us. As Dave Ramsey says:

“Remember, there’s ultimately only one way to financial peace, and that’s to walk daily with the Prince of Peace, Christ Jesus.

Source: DaveRamsey

Top 7 Best FinTech Companies in Nigeria

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Financial technology, also known as FinTech, is an industry that uses advanced web or mobile application technology to provide effective and efficient financial services for the end-users. Unlike the traditional banking system, they are flexible companies that have the capacity to bring up innovative ideas and solutions in the information and technology space.

Most Nigerian fin-tech companies are experiencing a surge in growth due to rapid technology developments in the financial sector.

The Fintech Industry is majorly categorized into these forms:

  • Payments
  • Savings and Investment
  • Personal Finance
  • Cryptocurrency and virtual wallet
  • Lending
  • Mobile banking e.t.c

Here’s our Top 7 Fintech Companies Currently Leading in the Fintech Market in Nigeria.

Paystack

Paystack has come to be one of the fastest-growing fintech in Nigeria. The company was founded in 2016 by two tech-enthusiast friends, Shola Akinlade and Ezra Olubi. According to Paystack, they help businesses in Africa receive payments from anyone anywhere in the world. Paystack is currently trusted by over 60,000 businesses across Africa. By October 2018, they had collected over 2.9 million payments and paid out over $27.5 million.

Flutterwave

Flutterwave is making waves in Africa as one of the top Fintech startup companies in Nigeria. The company was founded in 2016 by Iyinoluwa Aboyeji, the co-founder of Andela, and Olugbenga Agboola, an ex-banker. With Flutterwave, you can pay bills, make or receive payment in over 150 currencies including Dollar, Euro, Yuan, and Naira. Presently, top brands like Uber, GIGM, Jumia, Hotels.ng, Booking.com, ALAT, and so on.

The startup has been able to establish partnership with over 40 banks across various nations in Africa and has processed as much as 100 million transactions.

Paga

The company was founded by Tayo Oviosu in 2009 and is one of the top FinTech companies in Nigeria. Paga is a mobile payment company that is tested, reliable and quick Even without an internet connection; users can make payment by simply dialling the code, *242#. This FinTech company boasts of over 12 million users, with more than 20,000 agents in different parts of the country.

e-Tranzact

e-Tranzact was founded in 2003. It is one of the premier payments switching and payment processing platforms in Nigeria. With the technology, you can simply, safely and quickly complete payment either online or offline.

In 2018, e-Tranzact processed about 400 million transactions worth N30 trillion. And in July 2020, the company’s total asset stood at N6.7 billion.

Kuda Bank

Kuda Bank is a fully digital bank launched in September 2019. It was co-founded by Babs Ogundeyi. Within a space of one year, the FinTech startup was able to garner over 500,000 users across all devices. With your smartphone and Kuda app you can deposit, withdraw with an ATM card, transfer, and get quick loans all for free without any paperwork. As reported by Tech Crunch in November 2020, Kuda raised $10 million and processes transactions worth $500 million monthly.

Interswitch

It is a commerce company that has integrated digital payments and focuses on businesses in Africa. It is one of the oldest FinTech companies in Nigeria. The company was founded by Mitchell Elegbe and started as an electronic payments processing and transaction switching company in 2002. Interswitch also owns Retailpay, verve debit card, Smartgov and numerous automated teller machines (ATMs) across the country.

PiggyVest

PiggyVest is an online savings platform that enables savers to put away funds that they would prefer not to withdraw effectively. PiggyVest offers different saving plans. One of the interesting features on the Piggybank platform is the feature which enables you to automatically set the amount of money you want to save daily.

The amount will automatically be deducted from your account every day and get saved in PiggyVest until the set time for withdrawal, where you withdraw with the stipulated interest (current 8% p.a).

There are other top Fintech platforms in Nigeria like Remita, Carbon Paylater, Lidya, Vogue Pay and so on which are also currently doing well in the market and providing seamless financial transactions for the public on a daily basis.