TRAINING MATERIAL

PREPARED ON INSURANCE,
RISK MANAGEMENT, HEALTH
& SAFETY for Small & Medium
Business Enterprises

Prepared by: Abraham Melese

July 6, 2023 Addis Ababa, Ethiopia
 Discussion Points
Insurance
Benefits of Insurance

Key Insurance Words

Types of Insurance
 Insurance
- Is a system under which the insurer,
for a consideration usually agreed
upon in advance, promises to
reimburse the insured or to render
services to the insured in the event that
certain accidental occurrences result in
losses during a given period.
 Insurance
Benefits of Insurance
 Provides Economic Protection- Protects
you against unexpected losses that can
affect your finances
 Provides Confidence & Certainty-

With insurance you have a certain level of

peace of mind that your future is
guaranteed against unexpected loss
 Insurance
Benefits of Insurance
 Grants Loan- The insurance policy can
be used to apply for loan as a security
 Key Insurance Words
 Underwriting- is the process of evaluating
a risk to determine if the insurance
company will insure it and, if yes, then
pricing it
 Claims- is a request to the insurance

company for payment after a policyholder

experiences a loss covered by their policy.
 Premium- is an amount paid periodically

to the insurer by the insured for covering

his risk.
 Types of Insurance
 PROPERTY
Insurance
 LIABILITY Insurance

 LIFE Insurance
 Types of Insurance
 PROPERTY Insurance
A. Fire & Lightning Insurance
Is a type of property insurance which
indemnify the insured against financial loss
or damage to property being damaged or
destroyed by fire.

The property may include:-

Buildings, fixtures & fittings,
Machinery, Plant & all other contents
belonging to the insured or held in
trust, stock and work in progress:
these include retail & wholesale
stock, property raw material, …etc.
 Types of Insurance

PROPERTY Insurance
B. Burglary & House Breaking
Insurance
The Policy broadly covers burglary, theft
(following actual, forcible and violent
entry of and/or exit from the premises)
including for the damage caused to
premises
 Types of Insurance
 PROPERTY Insurance

C. MOTOR Insurance
 Comprehensive Insurance

 Third Party Insurance

 Third Party Fire & Theft Insurance

 Types of Insurance
 PROPERTY Insurance

Comprehensive Motor Insurance is

the most extensive policy type and
covers third-party liabilities as well
as own damage costs i.e due to
overturning, collision, theft…etc of
the vehicle insured.
 Types of Insurance
 PROPERTY Insurance
D. Machinery Insurance
Provides coverage for a range of
machinery and equipment used in
businesses, such as manufacturing,
construction and logistics
Perils Covered:- Theft, damage,
breakdown & the like
 Types of Insurance
 PROPERTY Insurance
D. Machinery Insurance
Types of Machineries Covered:-

Production Machinery
 Construction Machinery

 Generators

 Compressors

 Cranes

 Forklifts…etc.
 Types of Insurance

PROPERTY Insurance
D. Machinery Insurance
Types of Machinery Insurance:-
 Machinery Breakdown Insurance

Provides coverage for sudden and

unforeseen damage to Machinery due to
mechanical or electrical breakdown,
explosion or other covered events
 Types of Insurance
 PROPERTY Insurance
D. Machinery Insurance
Types of Machinery Insurance:-
 Electronic Equipment Insurance

Provides coverage for loss or damage to

electronic equipment such as computers,
servers and communication systems due to
accidental damage, theft or other covered
events.
 Types of Insurance

 PROPERTY Insurance
D. Machinery Insurance
Types of Machinery Insurance:-
 Contractors Plant and Machinery
Insurance
Provides coverage for loss or damage to
Contractor’s Plant and Machinery, while
they are being used on a construction site.
 Types of Insurance

PROPERTY Insurance
E. PVT Insurance
A Property Insurance which
covers loss or damage to any
property by Political Violence and
Terrorism actions.
 Types of Insurance

PROPERTY Insurance
E. Pecuniary Insurance
- Fidelity Guarantee Insurance
- Money Insurance
- Bond Guarantee
 Types of Insurance

LIABILITY Insurance
1. Workmen's Compensation
Insurance
Provides cash benefits and/or medical care for
workers who are injured or become ill as a
direct result of their job.
 Types of Insurance

LIABILITY Insurance
2. Motor Third Party Insurance
Covers damage that the vehicle may cause:
injury to a pedestrian or passenger, damage
to another vehicle or to a building or
property.
 Types of Insurance

LIABILITY Insurance
3. Professional Indemnity Insurance
Protects you against claims for loss or damage
made by clients or third parties as a result of
the impact of negligent services or advice you
offered.
 Types of Insurance
 LIABILITY Insurance
3.Professional Indemnity
Insurance
For who:-
 Accountants/ Auditors
 Consultants/Designers/Architects
 Health Professionals…etc
 Types of Insurance

LIABILITY Insurance
4. Product Liability Insurance
Covers the cost of compensating anyone who
is injured by a faulty product that your
business designs, manufactures or supplies .
 Types of Insurance
 LIFE Insurance
1.Term Life Insurance
It provides Compensation (death
benefit) to the beneficiary if the
insured person only dies within the
stated period mentioned in the
policy.
 Types of Insurance
 LIFE Insurance
2. Whole Life Insurance
It is also called permanent life
assurance and the coverage lasts your
life time.
 Types of Insurance
 LIFE Insurance
3. Medical / Health Insurance
Indemnify the insured in respect of
medical expenses incurred by an
insured person resulting from the
insured persons sustaining accidental
bodily injury or illness within the
period of insurance.