Key Commercial Insurance Policies in Ghana

Key Commercial Insurance Policies in Ghana

These policies are designed to protect the business's assets, cash flow, and legal standing against risks beyond simple fire damage.

1. Business Interruption (Loss of Profits) Insurance

This is arguably the most critical addition to a standard fire policy.

• What it Covers: When a catastrophic event (like in a filling station) forces a business to shut down or operate at a reduced capacity, this policy covers the resulting financial loss. It replaces the Net Profit that the business would have earned and covers Standing Charges (fixed costs like rent, staff salaries, and utility bills) that must continue to be paid even when the doors are closed.
• Why it's Essential: A fire claim may repair the building, but the business can still collapse due to a lack of income during the reconstruction period (which can last 6 to 18 months). Business Interruption cover ensures continuity and prevents insolvency.

2. General Liability and Public Liability Insurance

The legal obligation to the public is a major risk.

• Public Liability: This policy protects the business against legal liability for bodily injury, death, or property damage to third parties (like customers, suppliers or neighbours) occurring on the premises or arising from business operations. In any typical fire break out scenario, this covers damage caused by the fire spreading to adjacent uninsured properties.
• Product Liability: Crucial for manufacturers, suppliers, or traders. It covers legal costs and compensation for injury, death, or property damage caused by a defect in the products the business sells or supplies.

3. All Risk/Asset All Risk Insurance

This is a comprehensive policy for physical assets.

• What it Covers: Instead of listing specific perils (like fire, flood, etc.), an "All Risk" policy covers loss or damage to physical assets (buildings, machinery, equipment, furniture) from any unforeseen and sudden cause, unless specifically excluded in the policy wording.
• Why it's Essential: It offers broader coverage than a standard fire policy, including damage from accidental causes, such as a construction error (if applicable), or other non-fire related issues.

4. Theft, Burglary, and Money Insurance

Crime is a separate and frequent risk for commercial entities.

• Burglary Insurance: Covers loss or damage to property (stock, equipment, etc.) following a forcible and violent entry into the premises.
• Money Insurance: Covers loss of cash within the premises (e.g., in a safe) and while being transported (Cash-in-Transit), a high-risk activity in commercial areas.
• Fidelity Guarantee: Protects the business from financial loss (theft of money or goods) caused by the dishonest acts of its own employees.

5. Goods in Transit Insurance (GIT)

Essential for any business that moves stock or materials.

• What it Covers: This policy indemnifies the insured against loss or damage to goods while they are being transported by road or rail within Ghana (Inland Transit). The covered risks typically include fire, theft (often following violence to the carrier), and accidental damage to the carrying vehicle.
• Why it's Essential: Given the road infrastructure and accident risks, this ensures that the loss of valuable inventory being shipped between a warehouse and the Ability Square market (or vice versa) does not fall entirely on the business.

6. Employee-Focused Covers

Businesses must protect their workforce, as mandated by Ghanaian law.

• Worker's Compensation: This is mandatory for employers under Ghanaian law (P.N.D.C.L 187). It covers the employer's legal liability to pay compensation to employees who sustain injury, disability, or death arising out of and in the course of their employment.
• Group Personal Accident (GPA): Provides a 24-hour cover (not just work-related) for employees who sustain accidental bodily injury, offering compensation for death, permanent or temporary disability, and medical expenses.

By layering these specialized policies onto the compulsory Fire and Third-Party Liability cover, a commercial entity can create a comprehensive risk management shield, ensuring that no single catastrophe, be it fire, crime, or a liability lawsuit, can threaten its long-term viability in the Ghanaian market.