5 Benefits of Insurance for Business Owners

Imagine a business venture burnt to ashes overnight due to something as little as a gas leakage. There’s so much pain to be felt by the business owner as well as so many troubling questions in his or her mind. These questions include how to bounce back, where to start from, how to pay back debts owed and so on. As much as nobody wishes for an unfortunate event to happen in their businesses or personal lives, making a provision against such event is a wise thing to do. Hence why we have got INSURANCE.

According to Wikipedia, Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss ».

Business owners specifically, tend to derive quite a number of benefits from insurance and below is a list of five ways that a business and its owner can benefit from insurance.

1. Payment for Losses

The topmost benefit of insurance for business owners is the outright payment/indemnification you get for your financial losses after the occurrence of the unfortunate event. Since you are duly insured against such occurrence, you do not have to fully bear the loss (or you may just bear just a portion of it) depending on the type of insurance. When such losses occur, it is the responsibility of the insurance institution to pay for the losses and get you back on track with your business activities.

2. Saves Stress in Difficult Times

Losses are not planned by many business owners and things can be stressful when it finally occurs. This is because a loss can be physically, emotionally and psychologically draining. Sequel to getting your financial losses covered, you also get due relief from the stress and worries that could have brewed if there was no insurance back up.

3. Business Stability

A loss, whether little or large affects the stamina of your business. With Insurance, bouncing back after the occurrence of an unfortunate event almost immediately ensures business stability and consistency which in turn increase the life span of the business. It also gives your clients and customers the reason to trust your business because of it's resilience in the face of such negative occurrence.

4. Increases Credibility of Your Business

Coming from the point of business stability, an insurance policy for your business gives investors a guarantee and makes them confident enough to invest in your business. Businesses that are insured and registered with the Securities and Exchange Commission (SEC) gives investors a large yard to observe and bet that your business is credit worthy. This is business goodwill as it helps you erase doubts from the minds of the lenders.

5. It Complies with Legal Requirements

Insurance can be part of legal requirements for running a business in some countries and this gives your business the complete legal standards to compete with other businesses in your industry.

 

Every business professional should approach insurance just like saving for emergencies or rainy days because in every business, you cannot be certain of what loss might occur. Whether the loss insured against occurs or not, insurance poses a lot of benefits to businesses, owners and stakeholders. If you have ever disregarded the idea of Insurance, take this as an assurance that you have nothing to lose and rather a lot to gain from it.

5 Factors to Consider Before Taking a Loan

Taking a loan has become quite easy in recent times as it can be done right in the comfort of our homes with just our mobile phones and access to the internet. This has eliminated the tedious process of loan application and in turn led to increase in number of people taking loans. Despite the ease in the loan application process, before taking a loan, we should put some factors into consideration to determine if it’s the right thing to do at that point in time. In this article, I will take you through five different factors to consider before taking a loan.

1. Reason for Taking a Loan

The first and major factor you should consider is the reason or aim behind taking the loan. Are you taking it for business purpose, health purpose, school purpose or just for personal satisfaction? In order to avoid unnecessary debt, it is of importance to be sure that what you are taking the loan for is actually crucial and will in turn yield greater returns.

Read: How to Get a Loan from First Bank of Nigeria in 2025

2. Interest Rates

The interest rate is used to measure how much interest your loan will accumulate over time. So, it is of importance to consider the interest rate because it determines how much you will be repaying at due date.

3. Income and Financial Position

If you do not have a stable source of income or you are in an unfavorable financial position that can make loan repayment quite difficult, then you should really reconsider taking a loan to avoid further problems.

4. The Repayment Tenure of the Loan

How long you have until the loan's maturity or repayment date is also important because it allows for accessing if you can meet up with the repayment at that particular period or not.

5. Lender’s Credibility

In cases where the intended loan is not from a reputable financial institution, a thorough background check on the lender to determine its credibility is important before going ahead to take the loan.

In conclusion, taking a loan is not a decision that should be taken with levity. Hence, the need to analyze all of these factors with due diligence to determine if we should go ahead with taking a loan or not. Eventually, if you happen to fall on the favorable side of all of these factors then it is safe to say that you can go ahead to seal that loan contract.

9 Ways to Get Funding for Your Business in 2025

 9 ways you can obtain funding for your business:

Self-funding: Start by using your personal savings or assets to finance your business. This shows potential investors how committed and confident you are in your venture.

Read: How to Manage your Money better in 2025

Friends and family

Reach out to friends, family, or acquaintances who may be interested in investing in your business. Most would say NO, but some would dash you the money, some would loan you, some would want equity in your business. Whatever the case, just make sure there is a formal, documented agreement, to avoid future complications.

Angel investors

Seek out angel investors. These are individuals or groups willing to invest in early-stage businesses in exchange for equity or a stake in your company. Attend networking events, pitch competitions, or use online platforms to connect with potential angel investors.

Venture capital

If you have a high-growth potential business, consider approaching venture capital firms. These firms invest in startups and early-stage companies in exchange for equity. They often provide guidance and expertise alongside funding.

Crowdfunding

Platforms like Kickstarter, Indiegogo, or GoFundMe allow you to present your business idea to a broad audience and raise funds from individuals interested in supporting your venture. In return, you may offer rewards, pre-sales, or equity, depending on the platform and campaign.

Bank loans: Approach banks or credit unions (yes, we have them in Nigeria) for business loans. Be prepared with a well-structured business plan, financial projections, and collateral to secure the loan. I met a guy in one of my high-ticket seminars who’d gotten several business loans from BOI (Bank of Industry)

Grants

Research government and private grants available for businesses in your industry or location. You’d be surprised what you’ll find. These grants often have specific eligibility criteria and may require a detailed application process.

Incubators and Accelerators

Joining an incubator or accelerator program can provide funding, mentorship, and resources to help grow your business. These programs are often industry-specific and offer networking opportunities as well. I googled “incubator and accelerator program in nigeria” and was shocked to see plentyyyyy. So, yea, do your research and apply to suitable ones.

Strategic Partnerships

Explore the possibility of forming strategic partnerships with established companies or investors who can provide financial support, industry expertise, or access to resources and distribution channels.

Conclusion

While you diligently try your efforts to securing funding for your business, always remember that each funding option has its own advantages, disadvantages, and eligibility criteria. As such, it is important that you tailor your approach based on your business type, growth potential, and funding requirements.

It's also important to have a well-prepared business plan, financial projections, and a compelling pitch to present to potential investors or lenders.