Insurance is a contract by which one party undertakes to indemnify another against loss,damage or liability arising from an unknown event. It is a form of risk management designed to protect the financial and general well-being of businesses and lives in case of unexpected and undesirable events.
Many types of insurance exist for businesses,they are;
- Fire insurance
- Life insurance
- Accident insurance
- Motor insurance
- Burglary insurance
- Comprehensive insurance
- Fidelity insurance
- Marine insurance
- Goods in transit insurance
- Agriculture insurance
It is very important for entrepreneurs to insure their businesses because it helps in safeguarding against numerous risks,reduces the burden of loss, gives confidence and provides security to venture into certain areas.
The law also require certain businesses to undertake insurance like deposit taking businesses or banks are required to insure their businesses under the Nigerian deposit insurance corporation Act and also goods carried by sea should be insured according to marine insurance law.
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