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The short answer
Most UK companies insure Nigerian operations with a mix: locally issued Nigerian policies for property, motor and employee covers, sitting under or alongside a UK or global policy for liability and cyber. Some Nigerian covers are required by law, such as the group life insurance the Pension Reform Act requires employers to hold for staff. Whether a UK insurer can cover a Nigerian risk directly is a regulatory question for a broker in each country.
When a UK company opens an office in Lagos or Abuja, or starts holding stock in a Nigerian warehouse, the UK insurance schedule seldom keeps up. The UK policy may exclude overseas premises, may not pay claims in naira, or may not be allowed to cover Nigerian risks at all. Getting the structure right before a claim is far easier than after.
Local, global, or both
Insurers and brokers talk about three structures:
- Local policies only
- Each Nigerian risk is insured by a Nigerian insurer under a Nigerian policy. Claims are handled and paid locally, usually in naira. The UK company has less visibility of terms and limits.
- Global policy only
- One UK or international policy names the Nigerian company and its locations. Simple to manage, but it may not satisfy Nigerian rules on where local risks must be insured, and claims can be slower to pay locally.
- Master programme with local policies
- Local Nigerian policies meet local requirements, and a UK master policy sits above them, filling gaps in cover and limits. The most common choice for groups that want control.
Nigeria regulates who may insure Nigerian risks, and the rules were reshaped by recent insurance reform legislation. Ask a broker registered in Nigeria, alongside your UK broker, which of your covers must be placed with a Nigerian insurer and which can sit on the UK policy.
Covers to think about for a Nigerian operation
- Group life for employees. PenCom's notice says that under section 4(5) of the Pension Reform Act 2014 every employer must maintain a group life insurance policy for all employees, at a minimum of three times annual total emolument, and display the certificate.
- Property and contents for the office, generators, inverters and stock, including fire and burglary.
- Motor for company vehicles in Nigeria, insured locally.
- Employee health cover, often offered as a benefit and arranged locally.
- Goods in transit and marine cargo if you import or export.
- Liability: public, product and professional indemnity, which may be easier to arrange on the UK or global policy.
- Cyber, usually on the UK policy. The UK National Cyber Security Centre notes that cyber policies may cover incident response, restoring systems and business interruption, but standard policies may exclude business email compromise fraud.
Tell the insurer everything
Under section 3 of the UK Insurance Act 2015, a business must make a fair presentation of the risk before the contract: disclose every material circumstance it knows or ought to know, or enough to put a prudent insurer on notice. Overseas operations are material. If the UK insurer has not been told about the Lagos office, the staff there or the stock held, a claim connected with them may be reduced or refused.
Example
Example only. A UK company holds ₦80,000,000 of stock in a Lagos warehouse. Its UK contents policy covers 'business premises in Great Britain'. A fire destroys the stock. The UK policy does not respond because the premises are outside its territorial limits, and there is no Nigerian policy. A local property policy, with the UK insurer told about it, would have avoided the gap.
Claims in naira, policies in pounds
Currency is the detail most often missed. If the master policy is written in pounds and the loss happens in Lagos, the policy should say which exchange rate converts the naira loss and on what date (the date of loss, or the date of settlement). With a moving rate, that choice can change the payout materially. Local Nigerian policies usually settle in naira, which matches local repair and replacement costs but leaves the UK parent with exchange-rate risk if it is funding the rebuild in pounds.
Keep sums insured under review. Where replacement costs in Nigeria are driven by imported equipment, a sum insured fixed in naira a year ago may no longer replace the asset. Ask the broker how often to revalue, and record the date and basis of each valuation.
Questions to ask your brokers
- Which of our Nigerian covers must legally be placed with a Nigerian insurer?
- Does our UK policy's territorial limit include Nigeria, and for which covers?
- In which currency are claims paid, and what rate applies if the policy is in pounds but the loss is in naira?
- Does the cyber policy cover payment diversion or email fraud, or exclude it?
- How are local claims handled, and who in the UK is told?
Where Pryme fits
Premiums and claims often run in both currencies. A Pryme Business Account can pay a Nigerian premium in naira and a UK premium in pounds, and the Compliance agent can track renewal dates and the group life certificate for a person to act on. See also business continuity for power and internet and the Nigerian guide to group life insurance for employers.
Questions people ask
Does my UK business insurance cover my office in Nigeria?
Only if the policy's territorial limits include Nigeria and the insurer was told about the office. Many UK policies cover Great Britain or the UK only.
Is group life insurance compulsory for employers in Nigeria?
PenCom says every employer must maintain group life cover for all employees at a minimum of three times annual total emolument.
Can a UK insurer cover a Nigerian warehouse?
That depends on Nigerian rules on insuring local risks. Ask a broker registered in Nigeria.
What is a master insurance programme?
A global policy that sits above local policies, filling gaps in cover and limits while the local policies satisfy local rules.
Sources
- PenCom: Group Life Insurance Policy notice (c.2021) · accessed Oct 2026
- legislation.gov.uk: Insurance Act 2015, section 3 (duty of fair presentation) · accessed Oct 2026
- NCSC: Cyber insurance guidance · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.