Protecting Your Properties, Businesses Against Theft

In a volatile environment like Nigeria where security of lives and property is porous and security apparatus are not alive to their duties, it is easier for one to loose all his either his personal or business assets to burglary.

In such circumstance, it might be difficult for, especially, Small and Medium Enterprises(SMEs) to survive from such mishap because it will cost a lot to replace the lost items in a prize-inflated environment.

But guess what, with Theft/Burglary Insurance, you have no reason to grief as your insurer will replace all the lost goods.

How Theft/Burglary Insurance Works

Theft/Burglary Insurance policy is designed for business premises and covers stock in trade, goods held in trust or on commission, fixtures & fitting and utensils of trade.

The scope of cover is limited to burglary and house breaking only as it does not include related perils like larceny which are not covered by the definition.

Property insured is covered only when it is lost from the insured premises and not from any other location

According to IGI Plc, who runs such policy, “For it’s premium, there is no tariff regulation and each case is considered on merit. The determining factors include: the client himself, situation of risk, the type of property (whether easily saleable in the market), security measures & precautions taken and previous claims experience

“In most cases, the benchmark rate varies between 0.35 per cent to 0.75 per cent for a standard risk. With regards to rating of the risk in first loss policies, it depends on the proportion the maximum probable loss bears to the maximum sum insured with appropriate discount.”

The proposal form from the insurance companies, such as; IGI Plc, Custodian, Sanlam Insurance and so on, should be completed, providing very detailed information on the location of the risk and claims history.

Often inspection of the premises and its neighbourhood will be carried out by your insurer.

Need To Purchase The Policy

The policy is vital especially when the property is pledged with a financial institution. Normal security arrangements are necessary for an insurer to accept the proposal for insurance. Even if an elaborate security system is planned, the cost of such system will not be as expensive as the premium paid for the Burglary policy, as the risk is dispersed and distributed among the insuring public.

Speaking on this development, the head, Bancassurance and distribution, Old Mutual Nigeria, Dumebi Okonkwo, said: “Since SMEs are the drivers of the economy, they should benefit from insurance claims, but unfortunately, many of them did not insure, believing that disaster will not happen. But the wise ones who insured will automatically get their claims.”

For SMEs, she said, risk assessment is very critical to mitigate financial loss, saying, insurance companies, such as Old Mutual have different insurance products to insure SMEs in the country.

To sustain and securitise one’s business, she said, the owner must insure his equipment, motor vehicles, stock and human capital, saying, Fire insurance, burglary insurance, motor insurance, group life insurance, among other products, are insurance solutions to protect entrepreneurs and their businesses.

Speaking on liabilities that business owners are exposed to,  the head, corporate sales, Old Mutual Nigeria, Makanjuola Tubi, said, there are policies that cover liabilities that are likely to occur in the course of business, noting that, liabilities can arise from product sold, use of public space or even advice given by the virtue of one’s profession.