SME Business Insurance Checklist for Kenyan Entrepreneurs

Building a small business in Kenya is hard enough without watching a single fire, lawsuit, or theft erase years of work. The good news: a small set of well-chosen insurance policies can protect against almost every catastrophic SME risk for less than 1% of annual turnover. Here is the checklist.

1. WIBA cover

Mandatory the moment you have one employee. Covers work-related injury, illness and death. Premium starts at KES 5,000 a year. (See our full guide to WIBA.)

2. Public liability

Pays compensation if a customer, supplier or member of the public is injured or their property is damaged because of your business activity. Essential for any business with foot traffic — shops, restaurants, salons, gyms, schools. Limits of KES 5 – 20 million are standard.

3. Fire and perils on premises and stock

Covers the building (if you own it), fixtures, fittings, stock and equipment against fire, lightning, explosion, flood and impact damage. This is the policy that decides whether you reopen after a major incident.

4. Burglary and theft

Covers stock and contents stolen by forcible entry. Premium scales with sum insured and security level — alarms, CCTV and grilles all lower the rate.

5. Money in transit and in safe

Critical for retail businesses banking cash. Covers cash from the moment it leaves the till until it is deposited at the bank.

6. Goods in transit

If you ship product to customers, GIT covers loss or damage in transit — by road, rail or air, including off-loading.

7. Business interruption

This is the policy most SMEs forget — and the one that saves the business after a fire. It pays your loss of profit and standing expenses while you rebuild. Insure it for at least 12 months of gross profit.

Optional but increasingly important

• Professional indemnity — for consultants, accountants, doctors, architects
• Directors' & Officers' liability — for company directors
• Cyber liability — for any business holding customer data online
• Group medical and GPA — increasingly used as a staff-retention benefit