Could Your Business Survive a Protest? Why Every Business, Big or Small, Needs Insurance Now

By William Kiama, Manager/ General Insurance Business at AKI

In recent months, political protests and civil unrest have swept across parts of our country, leaving a trail of destruction in their wake such as looted shops, burnt down stalls, and shuttered businesses. For many small business owners, these moments of chaos are heartbreaking financial realities.

Yet amidst this uncertainty lies an uncomfortable but crucial question: Could your business survive a protest? For too many small enterprises, the answer is a painful no.

The Hidden Vulnerability of Small Businesses

Small businesses including kiosks, boutiques, salons, cyber cafés, and retail shops are the lifeblood of Kenya’s economy. But they are also deeply vulnerable. Situated near bus stops, marketplaces, and residential areas, many are exposed to high foot traffic but lack adequate protection when things go wrong.

Events like fire, theft, flooding, and violent demonstrations can wipe out years of hard work in a matter of hours. And while most entrepreneurs focus on physical security such as CCTV cameras, reinforced doors, and hired guards, many lack a financial backup plan when disaster strikes.

That’s where insurance comes in.

Some of the biggest risks to small businesses aren’t always obvious until they occur. Fires in densely built areas can spread quickly and destroy entire blocks. Looting and property damage during protests can leave shop owners counting unimaginable losses. Flooding during heavy rains often leads to stock damage or inaccessible premises. In some cases, theft, whether from strangers or even employees, can bleed a business dry over time. Even income loss due to unexpected closures or the temporary absence of the business owner can prove crippling.

These incidents can cause serious financial strain, loss of customer trust, and in worst-case scenarios, total business closure.

What Kind of Insurance Does Your Business Need?

Whether you’re selling mitumba clothes in Gikomba or running a beauty shop in Kisumu, there are affordable insurance solutions designed for your type of business

A good place to start is with a Combined Business Insurance package. This covers your stock, equipment, furniture, and business premises from fire, floods, theft, riots, and malicious damage. For employers, a Work Injury Benefits Act (WIBA) policy is also essential. It provides compensation for employees injured on the job and is a legal requirement in Kenya. A group personal accident cover would also come in handy as it will cover your employees for any accidents happening whether at the place of work or at home.

Other important covers include Money Insurance, which protects your earnings in case of theft at the premises or while transporting money to the bank, and Fidelity Guarantee, which covers losses caused by dishonest acts committed by your employees.

If you’re worried about income loss during a crisis, then Business Interruption Insurance will be vital. This helps you recover lost profits and cover fixed costs such as rent or salaries if your business is forced to close temporarily due to damage.

And in light of recent events, Political Violence and Terrorism Insurance is a must-have. This policy provides compensation for damage caused by riots, protests, or even terror attacks like the devastating Dusit 2 incident of 2019.

Can You Afford It? Yes. Many small business owners assume insurance is only for big companies or wealthy entrepreneurs. But this is no longer the case. Today, some insurers offer affordable bundled packages starting from as low as Ksh5,000 per year, which is less than KSh14 a day. These packages are flexible, easy to set up, and tailored to meet the needs of both formal SMEs and informal traders.

To get started, you’ll need just a few documents: a completed proposal form, your business permit or registration certificate, and your national ID and KRA PIN. With these in hand, you can walk into any insurance office or speak to an agent or broker to get guidance on the right policy for your business.

If you experience a loss due to unrest or any covered risk, the most important step is to notify your insurer immediately. Most insurers have clear procedures laid out in the policy document and on their websites. After notifying the insurer, you’ll be guided on how to complete and submit the claims form.

For incidents involving riots or protests, ensure that you and your employees are safe first, then take reasonable steps to prevent further damage. Report the incident to the police, obtain a police abstract, and submit this along with the completed claim form to your insurer. Once all documentation is received, insurers typically assess the claim and make a settlement offer, usually within a reasonable time.

Where to Get Help

You can visit any insurance company, talk to a licensed broker or agent, or explore understand insurance platform developed by the Association of Kenya Insurers (AKI), which offers simple information on available insurance products and how to choose the right one.

In a country where politics can shift the course of daily life, insurance is no longer a luxury. It is a necessity. You may not be able to stop unrest, but you can protect what you’ve built. Insurance gives you the peace of mind to keep hustling, knowing that even if disaster strikes, you won’t have to start from zero.

So, ask yourself again: Could your business survive a protest? If the answer is no, then it’s time to take the next step. Insure your business today.