This is Why You Need Business Insurance in Nigeria
What is Group Life Insurance?
Goods in Transit Insurance is a type of insurance contract established between the insurance provider and the insured. Through this relationship, the insurer assumes the possible damages and losses that products may suffer during their transport.
We live in a global economy, and this interrelation of supply chains forces companies to require more significant insurance against possible damages to their products during transportation. GIT guarantees that shipments reach their recipients on time and in perfect condition while protecting transportation companies from liability. To avoid any problems that may appear during goods transportation, we recommend acquiring GIT.
Transport companies are obliged to respond in case of damage to cargo in transit. Just like with other types of insurance, the insurance provider and business manager must agree on the cost of goods to be transited. Hiring additional merchandise insurance for international transport is recommended to protect merchandise.
Mr. John was a business owner of a small business in Lagos. He was a happy man as he knew that his family and financial stability was well protected. Everyday he would happily work, feeling motivated and productive, like a natural leader.
However, when arriving at his workplace he realized that his staff did not feel the same way. He strived to build up a positive atmosphere, yet he found that something essential was missing. He understood that his team did not feel the security for them or their family as he did, and this made them feel unmotivated, which in turn, also affected him.
By having a Group Life and Accident Insurance as a part of your employee benefits package, you will create and enable a secure environment for your employees, which in turn will boost their overall productivity and performance at their workplace.
What does Goods in Transit Insurance cover?
GIT is “all-risk” insurance that covers, among others, the following risks:
- Theft
- Damage caused by accidents
- Loss
- The consequences of any untoward delay
- ICC (A): Offers all-risk coverage with some exceptions, such as improper packing.
- ICC (B): It focuses on risks related to crashes, tipping, fire, breakdowns, explosions, and loss of value during loading and unloading, and the same exception as ICC (A).
- ICC (C):
What is not covered by goods in transit insurance?
But, if we have said that there is “all-risk” insurance, how is it possible that there are circumstances in which our insurance does not cover us? Usually, this happens because the party that contracted the insurance acts maliciously for the insurance to pass on the amount, or one of the parties acts in such a way that the correct measures are not taken. A clear example can be a drunk driver who may spoil our merchandise.
In legal terms, good faith must prevail in a relationship between policyholders. Otherwise, our insurance may not cover possible damages or losses. Some of the situations that GIT will not cover are:
- Expenses incurred for the delay.
- Manifest vice.
- Inadequate packing.
- Negligent conduct of the carrier.
- Bad faith or fraudulent conduct by the insured.
Is GIT a legal requirement?
GIT Insurance is not required by law; however, if a business delivers a purchase of goods or courier service, it must have a GIT insurance policy. Also, it is beneficial for those who have recovery and trade businesses. GIT is also essential at the time of transporting business equipment, as the cost of damaged goods can be fatal for a company’s bottom line. If you want to learn more about business insurance, take a look at our post describing everything you need to know about business insurance
However, they do have similarities in the way that, in essence, they are both mandatory to an extent. Indeed, the Employees Compensation Act has made social insurance with Nigeria Social Insurance Trust Fund (NSITF) compulsory for all staff and employers in the public and private sectors nationwide. And by law, if companies have more than a certain number of staff, they would also need GLI. Which in turn, makes it more expensive for the employer to operate.
Help your employees and their families stay financially protected and better prepared while nurturing and enjoying the benefits of a motivated and productive workforce from within.
How to file your Goods in Transit Insurance claims
The factors that are often taken into account when calculating GIT are:
- Commercial invoice; the price of the policy will depend directly on it. It will not be the same price if the insured merchandise is covered in plastic as if it is a high-value car.
- The percentage that is passed on for import expenses and expenses at the origin.
- Freight costs of the transported goods.
- Along with any information that may be relevant.
Contact YOA Insurance Brokers
YOA Insurance Brokers offers free advice on insurance coverage, risk engineering, and claims processing services both locally and abroad. If you have any doubts about GIT, do not hesitate to ask us here info@yoainsurance.com.