General Insurance Covers
Property
Fire and special perils covers fire, lightning, explosion, storm, flood, impact, riot and malicious damage; burglary and consequential loss (business interruption) are separate covers. The sum insured should reflect reinstatement value; if it is lower, the average clause reduces any claim proportionately. Buildings, contents and stock are rated separately.
Motor
Three levels: third party only (the statutory minimum), third party, fire and theft, and comprehensive. Own-damage claims attract an excess; depreciation and betterment apply to older vehicles; a no-claim discount rewards clean history. Statutory cover protects third parties, not the insured’s own vehicle.
Liability
Public liability, products liability, employers’ liability (alongside the statutory employees’ compensation scheme) and professional indemnity. Check whether the trigger is “occurrence” or “claims made”.
Marine and special risks
Cargo uses the Institute Cargo Clauses: ICC(A) all risks, ICC(B) and ICC(C) named perils only. Risk passes under the sale contract (FOB/CIF), so the party holding insurable interest when the loss occurs must claim. Also hull, freight, open covers for recurring shipments, engineering, contractors’ all risks and money policies.
Traps
- Average applies to underinsured property, not to liability limits.
- “All risks” is not “every risk” - exclusions still bite.
- Under FOB the buyer bears transit risk; under CIF the seller insures but risk usually passes on shipment.
Rule of thumb
Sum insured ₦8m, actual value ₦10m, loss ₦4m → claim = 4 × 8/10 = ₦3.2m, less any excess.