When you’re running a business or freelancing, your income isn’t only what pays the bills it’s what keeps everything afloat. Here’s how insurance can safeguard that flow:
- Business Interruption Insurance
Covers loss of income when your business is disrupted by incidents such as fire, floods, or burglary.
Examples:
- First Assurance offers a Machinery Loss of Profit policy; covering lost revenue, wages, rental income, and recovery costs for up to 12 months
- Cannon Group provides Business Interruption Cover that includes wages coverage, increased working costs, and rental losses.
- Madison’s Business Interruption policy, for example, compensates for revenue loss while your premises are being restored.
- Income Protection Insurance
Designed to replace personal income lost due to illness, injury, or retrenchment.
Examples:
- NCBA Group Insurance offers Income Protection to cover bills and staff salaries during interruptions.
- Standard Chartered (via Sanlam) provides employee income cover alongside business protection packages.
- Key Person Insurance
Essential for businesses that rely on individuals critical to operations. Should a founder, top salesperson, or specialist fall ill or pass away, the policy compensates the business to help manage continuity and recruitment.
Offered by leading providers like Jubilee, Britam, CIC, and Old Mutual, these plans support business continuity after losing critical staff.
- Commercial Liability Covers
Protect against claims from third parties.
Examples:
- Standard Chartered’s Business Protection includes public liability, employers’ liability (WIBA), and work injury benefits.
- Imperial Guard and CIC offer general liability protection as part of their SME packages.
- Microinsurance & Gig Economy Options
Tailored for low-income earners, freelancers, and small traders. (e.g., per-trip accident cover).
Examples:
- Offered by firms like CIC and Britam Connect, these plans offer per-trip accident cover or flexible monthly premiums.
- SMEP Insurance Agency (via SMEP Microfinance) provides bespoke small-business insurance solutions
✅ Why This Matters
| Risk | Solution |
| Business shut down (fire/flood) | Lost income? Covered |
| Illness/retrenchment | Personal income replacement |
| Loss of a key person | Business continuity support |
| Liability claims | Protection from lawsuits |
| Gig work fluctuations | Affordable, flexible cover |
Quick Tips for Business Owners
- Bundle relevant covers into a Business Combined Policy (fire, income loss, liability, WIBA)
- Review and adjust sum insured regularly to keep up with business growth
- Compare microinsurance options if your income is irregular
- Always check regulatory compliance: statutory covers like WIBA & Public Liability are mandatory
Step 6: How to Choose the Right Insurance Policy-Series Finale
In our next post, we will be concluding on our Blog series in Insurance.
Ready to protect your income and business?
Fedhatrac helps you monitor your cash flow in real-time, through our bookkeeping, accounting, auditing and tax filing services all in one platform.
Visit fedhatrac.co.ke to simplify your business finances today.
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