Most Ghanaian SMEs either have no business insurance or hold only the bare minimum required by law. A single serious event — a fire, a customer injury, an employee accident — can financially destroy an uninsured business. Here is a practical guide to what you need.
Legally Required Insurance
Employers' Liability Insurance
If you have employees, employers' liability insurance is mandatory under the Workmen's Compensation Act (now the Persons with Disability Act and Labor Act framework). This covers compensation for employees who suffer injury, illness, or death arising from work. Fines for non-compliance: significant. More importantly, a serious workplace accident without insurance can bankrupt a business.
Motor Insurance (Third Party)
If your business owns or uses vehicles, third-party motor insurance is mandatory under the Motor Vehicles (Third Party Insurance) Act. Third-party covers damage and injury caused to others — not your own vehicle. Comprehensive cover is optional but strongly recommended for business vehicles.
Strongly Recommended Insurance
Fire and Perils Insurance
Covers your business premises, stock, and equipment against fire, lightning, explosion, storm, and flood. The most fundamental business insurance after employers' liability. Monthly premium: typically 0.1–0.5% of insured value per year.
Public Liability Insurance
Covers claims from third parties (customers, visitors, members of the public) for bodily injury or property damage caused by your business operations. A customer slips on your wet floor — without public liability cover, you pay all compensation and legal costs personally.
Essential for: retailers, restaurants, hotels, clinics, event businesses, factories.
Professional Indemnity Insurance
Covers claims that your professional advice or services caused financial loss to a client. Essential for: lawyers, accountants, consultants, architects, engineers, IT services, financial advisors.
Some professional bodies in Ghana require members to carry professional indemnity cover.
Goods-in-Transit Insurance
Covers goods while being transported — against theft, accident, damage. Critical for: traders, importers, distributors, manufacturers moving products.
Business Interruption Insurance
Covers loss of income if your business is forced to close due to an insured event (fire, flood, etc.). Many businesses that survive a fire are then killed by months of lost revenue during rebuilding. Business interruption cover fills this gap.
Industry-Specific Insurance
- Construction: Contractors All Risks (CAR) insurance — covers works, plant, and third-party liability on construction sites
- Agriculture: Crop insurance, livestock insurance
- Healthcare: Medical malpractice insurance
- Technology: Cyber liability insurance — covers data breaches and hacking
- Export businesses: Marine cargo insurance
Choosing an Insurer
Only use insurers licensed by the National Insurance Commission (NIC) of Ghana. Check the NIC website for the current list of licensed insurers. Key factors:
- Financial strength and claims-paying history
- Speed and quality of claims service
- Sector expertise (do they understand your industry?)
- Premium competitiveness
Reading Your Policy
The most important pages of any insurance policy: the exclusions section. Many businesses discover their claim is excluded only when they try to make one. Read exclusions before buying, not after a loss.
Build your business on solid legal and financial foundations. Use our free Business Structure Finder. Read about common legal mistakes and directors' duties.