The document discusses the importance of insurance for business growth, detailing its principles and benefits, such as financial protection against unforeseen incidents. A case study illustrates how adequate insurance coverage helped a business owner recover from a devastating fire that could have ruined her. Overall, insurance is portrayed as essential for mitigating risks, ensuring stability, and promoting economic growth in various enterprises.

1. BENEFITS OF
INSURANCE
FOR BUSINESS
GROWTH
Andrew Faluyi
Insurance/Financial Adviser
Aiico Insurance Plc

2. INSURANCE AND ITS
PRINCIPLES
Insurance is simply an agreement between the insurer and the insured, a contract
between the fortunate (insurer) & unfortunate (insured).
*At a very basic level, it is some form of protection from any possible
financial losses.*
PRINCIPLES OF INSURANCE.
1] Utmost Good Faith
2] Insurable Interest
3] Indemnity
4] Subrogation
5] Contribution
6] Proximate Cause

3. CASE STUDY
Whether you are a sole trader, social enterprise; limited
company; public liability, run a local business, or own a small to
medium-sized company, a shop, warehouse or you have goods
in transit; etc. we all need to obtain insurance coverage to
compensate for the financial consequences of an unforeseen
incident.

4. Case Study
I’m so glad I had insurance . . . without it, I would have been ruined
Our client never expected that 16 years of hard work and dedication would be undone in a
single night. But that is what happened when a fire ripped through her shop (Salon),
destroying everything.
It was a Friday night and we were at home preparing for the weekend. We got a phone call
from the woman who runs a shop a few doors away from ours. She told us to get over there
as fast as we could, the police and the fire brigade were already there – and our shop was on
fire. When I got there half an hour later, It was just devastating. People from the pub next
door were out on the street watching. The fire, caused by an electrical fault, had gutted the
shop’s interior. I lost all my stock and assets which left me out of business for six months.
The fire hit at a time I was expecting my busiest season. I just thought, what am I going to do
for a salary and feared that the disaster would spell the end of my business? But there was
light at the end of the tunnel . . . insurance. If I hadn’t been adequately insured, I would have
gone under. I’d have lost everything. Insurance was one of the first things I planned. I didn’t
know the ins and outs of my policy, but I’m so glad it included the business interruption
cover.
You have to realize that it can take three to five months, or even more, to get it all back and
you need to think ahead, even though you just think it won’t ever happen to you.
The clients policy covered replacement of everything as new and she had a steady income
while the shop was out of business.
Source: https://www.1stopinsurance.com/insurance/business-insurance/case-studies/

5. WHAT IS BUSINESS
INSURANCE
Businesses seek insurance to
cover potential damage to
property, to protect from lawsuit,
or contract disputes.
Business insurance
coverage protects businesses
from losses due to events that
may occur during the normal
course of business.

6. Running a business comes with inherent risks: An employee could get
injured on the job; a natural disaster could destroy property; or a client
could file suit, alleging a contractual breach.
For those and other reasons, it is important to protect your assets, both
business and personal. One of the best ways to do that is to make sure you
and your business are adequately insured.
There are many types of insurance or businesses including coverage for
property damage, legal liability and employee-related risks;
• Property Insurance
• Product Liability Insurance
• Vehicle Insurance
• Business Interruption Insurance
Source: https://www.investopedia.com/terms/b/business-insurance.asp

7. BENEFITS OF INSURANCE
FOR BUSINESS GROWTH

8. We do not work in a high-risk business, so insurance was low on
our priority list. Now that we have it, I have peace of mind.
–Susan Borison, Publisher/Editor in Chief, Your Teen
Magazine
A strong and inclusive insurance market boosts the
productivity of enterprises of all sizes by enabling
entrepreneurs to pursue higher risk and higher return
opportunities. It therefore makes a vital contribution to
economic growth.

9. Insurance contributes a lot to the general economic growth
of the society by providing stability to the functioning of
process. The insurance industries develop financial
institutions and reduce uncertainties by improving financial
resources. Insurance companies provide the required funds
for infrastructure development.

10. Insurance enables the
business owners to
concentrate on their work
without fear of loss due to
risk and uncertainty.
Source: https://www.yourarticlelibrary.com/insurance/the-role-and-importance-of-insurance-explained/7540

11. Promotes economic growth:
Insurance enables to mitigate
loss, financial stability and
promotes trade and commercial
activities those results into
economic growth and
development.
Source: https://www.yourarticlelibrary.com/insurance/the-role-and-importance-of-insurance-explained/7540

12. An adequate business
insurance plan can
help businesses
expand easily.

13. TOP 10 REASONS WHY YOUR
BUSINESS NEEDS INSURANCE.
https://smallbiztrends.com/2016/09/business-insurance-benefits.html
1. It’s the Law
2. You Could Get Sued
3. Keeps Your Business Up and Running
4. Makes You Look Credible
5. Protects Your Employees
6. Covers Acts of God
7. Guards Human Assets
8. Helps to Attract and Retain Employees
9. Contracts May Require It
10. Because You Cannot Predict the
Future
CONCLUSION

14. ANY QUESTION
THANK YOU FOR
LISTENING