If you own, build or occupy a building that the public walks into to do business - a shop, an office, a market stall in a building, a church hall used for business, a fitting shop - Ghanaian law says it must be insured. Most are not, and the National Insurance Commission has been inspecting with the Fire Service and the police to change that.

What the law says

Sections 218 and 219 of the Insurance Act, 2021 (Act 1061):

  • A person who builds, or has someone build, a commercial building must insure it with a licensed insurer - including while it is under construction.
  • The owner or occupier of a commercial building must insure it and keep the insurance in force.
  • Failing to do either is an offence.

A commercial building, in the Act, is a building or space with public entry and exit that is used for business, services or government administration - including buildings occupied by the government and public institutions.

So a tenant running a shop and the landlord who owns the building can both be on the hook. Agree in writing which of you holds the policy, and get a copy of it.

What the policy must cover

The Act sets the scope of a qualifying policy:

  • Collapse, fire, earthquake, storm and flood - the building itself.
  • Liability to people using the building - a customer hurt when a ceiling falls or a fire breaks out.

It must be with an insurer the NIC licenses, and it normally runs for 12 months, so it is renewed every year.

It does not have to cover your stock. The compulsory part is the building and your liability. Stock, cash and equipment need their own cover - and after a market fire, that is the part traders wish they had bought.

Why it matters in Accra

Fires at Makola, at Kantamanto and in a long list of smaller markets have cleared out traders who had no cover of any kind. Electrical faults, overloaded extensions and cooking gas are the usual causes.

The insurance pays out after the fact. The checks before it are cheaper:

  • Get the wiring checked by a qualified electrician, and do not run a shop off a chain of extension boards.
  • Keep a fire extinguisher where you can reach it, and know how it works. The Ghana National Fire Service issues fire certificates for commercial premises, and inspects.
  • Keep records off the premises - photos of your stock and receipts on your phone or in the cloud. A claim with no record of what was lost is hard to pay.

Buying it

  • Ask for “commercial building” or “fire and allied perils” cover, and say whether you want stock covered too.
  • Insure for the rebuilding cost, not the market value of the land and building. Under-insure and a claim is cut in proportion.
  • Pay the insurer directly and get the policy and a certificate. The inspectors will ask to see a current certificate.
  • Check the insurer is licensed at nic.gov.gh/entities/verify.

— Insurance in Ghana — Making a claim, and complaining — Registering a business