In a stark warning to Ghana’s private sector, industry leaders and regulators are sounding the alarm over widespread noncompliance with mandatory Professional Indemnity (PI) insurance—a lapse that threatens to cripple businesses already reeling from costly negligence lawsuits and catastrophic disasters.
Despite laws requiring professionals to carry PI coverage, many continue to operate without it, leaving firms exposed to financial ruin when errors occur.
The consequences of this negligence are etched into Ghana’s recent history. Take the 2025 Kantamanto Market fire in Accra, which gutted a global hub for secondhand clothing, displacing 8,000 traders and wiping out tens of millions of cedis in goods. Or the Achimota Melcom building collapse in 2012, which killed 14 and injured 61—a tragedy tied to unqualified contractors and ignored safety codes. These incidents, experts argue, are not just accidents but symptoms of a systemic failure to hold professionals accountable.
“Negligence isn’t rare—it’s routine,” said Charles Ansong Dankyi, Head of Marketing at Ghana’s National Insurance Commission (NIC). “Doctors botch surgeries, architects approve faulty designs, and contractors cut corners. Yet when disaster strikes, businesses foot the bill because those responsible aren’t insured.”
The financial domino effect is brutal. A single lawsuit over a collapsed building or botched project can bury small and mid-sized enterprises (SMEs) under legal fees, compensation claims, and reputational damage. For instance, a GH₵10 million negligence claim could shutter a firm paying just GH₵65,000 annually for PI coverage—a lifeline many still reject due to cost or complacency.
The hidden risks run deeper. Construction delays from lawsuits stall revenue, while market fires disrupt supply chains for months. A 2023 NIC study found that uninsured professionals indirectly contribute to 30% of SME closures in high-risk sectors like healthcare and construction. “Businesses assume they’re saving money by skipping PI checks,” Dankyi added. “In reality, they’re gambling their survival.”
Ghana’s Insurance Act 2021 mandates PI coverage for engineers, doctors, architects, and auditors, among others. Yet enforcement remains patchy, with the NIC estimating only 40% compliance. Critics blame lax oversight and a culture of short-term thinking. “Why pay premiums for a ‘maybe’ crisis?” said Kofi Mensah, an Accra-based contractor. His firm collapsed in 2023 after an uninsured engineer’s design flaw triggered a costly lawsuit. “Now I know: that ‘maybe’ is a when, not an if.”
For regulators, the solution hinges on public-private collaboration. The NIC is pushing awareness campaigns and tighter contract enforcement, urging businesses to demand proof of PI coverage before hiring professionals. “This isn’t just about avoiding lawsuits,” said NIC’s Head of Enforcement, Ama Serwah. “It’s about building trust. Investors won’t back industries where negligence goes unchecked.”
The stakes extend beyond economics. PI insurance, advocates argue, is a social responsibility. When a doctor’s error ruins a life or a building collapse orphans children, financial redress matters. “Insurance doesn’t erase harm, but it acknowledges it,” Serwah noted. “Without it, victims suffer twice—first from the injury, then from the injustice.”
As Ghana’s economy eyes growth, the message is clear: PI compliance isn’t optional. For businesses, the choice is simple—pay a fraction in premiums today or risk losing everything tomorrow. The cost of negligence, after all, is a debt that never sleeps.
