Aon Quartely Magazine

AON
RISK
WWW.AON.COM/KENYA | QUARTER 4, 2016
Crisis
Management
In this Issue
Management
Liability
Policy
Celebrating
World Enviroment
Day

Message
from
the CEO
JOSEPH N. ONSANDO – CEO – AON SUB SAHARA AFRICA &
MANAGING DIRECTOR- AON KENYA INSURANCE BROKERS LIMITED
Crisis Management
In a world where threats and risks face us both
internally and externally in the organization, there
is need to relook certain aspects of operations and
conform to a structured way of handling crisis.
Organizations find themselves in unique situations
that threaten to harm the firm, its stakeholders or
the general public.
Three elements are common in a crisis: a threat to
the organization, the element of surprise and short
decision time.
Crisis management involves dealing with threats
before, during and after they have occurred, and
is within the broader context of management
consisting of skills and techniques required to
identify, assess, understand and cope with a serious
situation. This primarily entails crisis prevention,
crisis assessment, crisis handling and crisis
termination. The aim is to be well prepared and
ensure swift response while maintaining clear lines
of reporting and communication.
This is why it is important to have the following
steps:
1. Have a Plan
Organizations through its leadership need to have
clear, written objectives during any crisis and
ensure key audiences are kept informed.
2. Identify a Spokesperson
Crisis could potentially impact health or wellbeing
of customers, general public or employees
and may attract media. To ensure that the
company speaks with one voice and delivers a
clear, consistent message, a spokesman must
be identified. This is usually a deliberate act by
management to avoid further deterioration of the
crisis through panic and misinformation.
3. Be Honest and Open
Lack of honesty and transparency generates more
negative media, therefore being as open and
transparent as possible can help stop rumors and
defuse potential media frenzy.
4. Keep Employees Informed
To ensure that business continues to flow as
smoothly as possible, senior management need to
inform the work force. This will also help to avoid
internal rumor-mongering.
5. Communicate with Clients, Customers
and Suppliers
Information on any crisis pertaining to your
organization should come from you first. It paints
the wrong impression if clients or suppliers learn
about your crisis through the media.
6. Update Early and Often
It is always better to over-communicate than to
allow rumors to fill the void. Update action plans
and new developments as early and often as
possible.
More often than not, well managed crises
confirm that your company has the processes and
procedures in place to address almost any issue
that may develop.

Contents
Insurance at a glance
The basic goal behind
buying insurance is to make
you financially whole
following a loss.
QUARTER 4, 2016
Celebrating World
Enviroment Day 2016
Crisis Management
Disaster Mitigation
Strategy
Celebrating Mothers
at Aon
Editorial Board
Fred Kung’u - Convener - ARS
Corporate Business Lines
Alice Nyambura - Marketing and
Business Development
Habiba Rashid - ARS Corporate
Business Lines
Esther Muriithi - Healthcare Division
Martin Kangethe - ARS Corporate
Division
Wilson Kopondo - Risk Management
Division
Sydney Obonyo - ARS Corporate
Division
Jacqueline Wamukoya - Healthcare
Division
Paul Ngomba - Life & Pension Division
Martin Muthui - ARS Corporate
Division
Kevin Marete - Group service Division
Margaret Nasieku - Marketing and
Business Development
Joy Bett - Corporate affairs
Rachel Kiungu - Healthcare Division.

Aon Kenya Insurance Brokers Ltd
Aon Risk Solutions (ARS)
Mitigating Cyber Risk
Cyber risk is no longer considered an emerging risk.
The rapidly changing nature of cyber threats confounds many. As the security industry strives to protect
companies with new, powerful tools, hackers invariably deploy even more damaging cyber attack techniques.
Every organization should consider the financial statement impact of cyber exposures. In a best case scenario,
a successful cyber attack will highlight the IT system weaknesses of an attacked company. The key questions
that every organization should ask is:
• Can we identify and quantify the damages from a perpetuated cyber attack?
• Beyond IT solutions, how do we protect ourselves from cyber risk?
At Aon, we constantly monitor and develop tools to sucssesfuly ward off threats relating to cyber security.
Our unique global presence in over 120 countries enables us tap onto an immensly vast talent pool that is
dedicated in providing world-class solutions to our clients. Safequard your business and let the world’s leading
solutions provider work for you.
To find out more, contact:
marketing@aon.co.ke, 020 4974000
Aon_Kenya
AonKe
Risk. Reinsurance. Human Resources.

Environmental issues are becoming
increasingly important with a growing
interest to find innovative ways to tackle
them. When the subject becomes an
“innovation” or a “new way of doing
business” there is always a place for
entrepreneurship. In other words, the
adoption of environmentally responsible
business practices can, conceivably,
open up an additional range of
opportunities for young entrepreneurs.
Celebrating
World
Enviromental
Day 2016
Article by Habiba Rashid
To celebrate and commemorate the
2016, World Environmental Day;
Aon Kenya sponsored an event held
at Kenyatta University organized by
Youth and Success Association(YASA)
in partnership with Young Africa
Leadership Institute (YALI) among
other partners as a Corporate Social
Responsibility Initiative . The theme
for the event was “Promoting Green
Entrepreneurship and Employment
among the Youth”, and the initiatives to
push for the above agenda were through
a youth entrepreneurship conference and
exhibition and a tree planting event.

Youth Entrepreneurship
Conference
The conference which was held at the Kenyatta
University Amphitheatre, hosted youth between
the ages of 18-35 years with the target population
being identified as youth in universities, colleges
and technical institutions, youth affiliated to KEPSA
& Kenya Youth Empowerment Program, Youth
Entrepreneurs from Micro & small enterprise
authority, beneficiaries of Uwezo Fund, beneficiaries
of Youth enterprise fund, youth from religious
institutions in Kiambu county and its environs, youth
from Kiambu county and youth from faith based
organizations in Kiambu.
This was platform for the young entrepreneurs
and participants to be able to meet and interact
with leaders and mentors in the private sector,
government, religious sector and public sector which
included representatives from Aon Kenya, the Uwezo
Fund, NHIF, NSSF, TECHNO, Kenya Private Sector
Alliance, Netfund among other.
With government involvement, it was an avenue to
engage on how the youth can access funding from
government projects, how they can access funding or
loans for their business. Non-profit organizations that
attended the conference also provided this avenue.
Equally, the event featured motivational speakers
who inspired and empowered the youth to fight and
work hard for what they believed in and what they
were good at, as opportunities provided at a glance
through the diverse industry players at the event,
where open to all and had no name tags on specific
individuals.
Tree Planting
Our planet is poised at the brink of a severe
environmental crisis. Current environmental
problems make us vulnerable to disasters and
tragedies now and in the future. We are in a state
of emergency, with environmental problems piling
up around us. Unless we address the various issues
prudently and seriously we are surely doomed for
disaster. Current environmental problems require
urgent attention. One of the ways on conserving
the environment is through encouraging tree
planting initiatives geared towards conserving the
environment.
In Kenya these environmental crisis are brought
about by the rampant deforestation witnessed
in recent decades, mainly as result of bad land
management, slash and burn farming methods,
unstainable logging and tree cutting for charcoal.
This has consequently put Kenyans at adverse risk
of global warming being witnessed through the
various flooding incidents that not only caused loss
of property and destruction assets but also caused
loss of precious human lives.
The tree planting activity was aimed at raising
awareness on environmental conservation and
management among the youth and general public.
Out of the 500 trees planted at the event, Aon
Kenya generously donated 200 trees towards the
commemoration of the 2016 World Environmental
Day some of which were planted at the sports centre
by Aon Kenya colleagues.
Youth Entrepreneurship
Exhibition
Green business is smart business. Going green
provides bottom line cost savings through the use of
locally available raw materials for the end product.
The exhibition focused on young entrepreneurs
businesses that have gone green in their business
processes through reducing energy consumption in
their production process while maintaining the same
output levels, reducing waste, recycling and water
conservation.
The event offered young entrepreneurs and
participants FREE exhibition space to showcase their
innovations, talents and abilities.

Aon Kenya Insurance Brokers
Aon Risk Solutions
Navigating Risk in Logistics
Aon Kenya’s logistics team combines industry knowledge with risk transfer expertise, and an
understanding of the value of superior logistics arrangements to its clients' business
challenges.
We are globally positioned to respond to your needs by providing tailored solutions. Find
out how our invaluable industry data can help you reduce your logistics risk and costs.
Email: marketing@aon.co.ke
Inland
Marine
Air
Risk. Reinsurance. Human Resources.

Article by Esther Muriithi

Wananchi Group’s ambitious and
increasingly successful services
to the retail markets in East and
Southern Africa have been built on
the principles of consumer inclusion
and homegrown quality, with the
company now looking to expand
further via all two core facets of the
organization.
Built largely upon its Zuku brand,
the home entertainment and
communications company has
become one of the key market players
in the region across direct-to-home
fiber network services and a unique
satellite television offering.
Unique Selling Propositions
One of Wananchi’s key differentiators
is its footprint and the subsequent
portion of the population it can reach
out to. Casting aside misguided
notions about the readiness of parts
of Africa to embrace innovative new
technologies, the company has
successfully brought its services to the
ever-expanding middle class market,
while some competitors continue to
focus on a smaller, wealthier section of
the region.
Zuku Fiber is arguably the product
benefiting most from Wananchi’s allencompassing
- philosophy; the triple
play platform comprising internet,
phone and television providing
speeds of up to 60 Mbps. Running
parallel to this is Zuku Satellite TV
the fastest growing platform in the
brand’s armory and currently covers
32 countries to bring its unique and
locally relevant content to millions of
people on the continent.
Continuous updates to this offering
have recently consisted of HD
channels while also focusing on
providing different and more
appealing content always remains at
the forefront of Wananchi’s strategy.
Investments into building fiber
networks directly into consumers’
homes, or building and acquiring new
and locally relevant television content
all gives us an advantage and a lot of
strong USPs.
Quality over quantity
As part of Wananchi Group’s recent
rise to market success, a huge focus
has been placed on the internal
structuring of the company and, in
particular, to the people within the
organization.
In the early years of the business’s
development, there wasn’t always
the lure to bring in the most skilled
individuals to capitalize on the
established and reputable business
model, but that has all changed now,
with Wananchi fast becoming an
employer of choice in the region.
Over the past years Wananchi Group
has been able to get a lot more
people with deeper skill sets than the
company could afford to access in the
past. The company is now getting
people to focus on very specific areas
of expertise and then bringing in new
people to supplement that, all the way
down, through from management to
the people on the ground.
A local success story
Wananchi Group’s Zuku brand is a
local success story this is due to the
indigenous nature of Wananchi Group,
ensuring that both he and the entire
team of employees can be proud
of working for a company in East
Africa providing services every bit as
comprehensive and advanced as those
seen in the rest of the world.
There’s a lot of talk around the
world about African constraints but
Wananchi Group’s Zuku brand is
actually building a first world business
here and every day they come to
work, they are developing this part of
the world and should be very proud
of their achievements. The people on
the ground can hold their heads up
high knowing that what they’re doing
is the same as what’s being done in
the western world and is being done
in a very positive way for the African
continent.

Crisis
Management
Article by Anne Mkala
The world is full of uncertainties that can disrupt both events
and businesses, and pose a significant threat to customers,
employees and infrastructure. Be it natural disasters, terrorist
attacks, fires, pandemics, or Internet of things era cyber
attacks that can cause physical damage anyone in charge of
any location where people congregate needs to be prepared.

Crisis usually occur because businesses fail to
properly understand and plan for the risks they
are facing. In Kenya we have had a few examples
that we can learn from which include;-
• The Westgate mall terrorist attack
• The El Nino floods
• Jomo Kenyatta Airport fire
• Cyber attack on government data
• The Garrisa University terrorist attack
• The Strathmore student fatalities and injuries
following a crisis mock exercise gone wrong

What can businesses learn from the way the organizers of major events have responded to such unpredictable
threats? The challenge for those in charge of places with lots of people present is managing crises effectively,
which means understanding the risks – and being as prepared as possible for all eventualities.
The potential financial costs of direct damage are compounded in such incidents by the possible long-term
damage to your organization’s ability to function. Property is no longer the only exposure at risk rather, with
civilian casualties now the primary target [of terrorism], organizations must also consider non-damage business
interruption, liability and casualty exposures.”
The implications of the response taken are considerable. While not acting can lead to disaster, the decision to
play it safe can also prove expensive. Developing an effective risk management plan is an essential first step to
minimizing the negative impact of a crisis. After all, the worst case scenario can lead not just to loss of revenue
and business reputation, but also life.
Putting people’s
safety first
There is need to move with speed
and efficiency. The Garrisa University
Terrorist attack was a perfect example
of what devastating effect one can
have to loss of life for lack of speed.
Setting roles and
responsibilities
Keeping people safe when an incident
occurs depends on anticipating the
kind of things that might go wrong,
and being prepared to make the
(often difficult) decision to order an
evacuation that will in itself lead to a
financial loss, rather than risk waiting
in the hope that it proves to be a
false alarm. Getting expert advice to
identify the areas of biggest potential
risk is a vital step with such complex
and potentially catastrophic incidents,
in which verified information can be
slow to emerge, and confusion about
the scale of the threat is often the
biggest initial challenge.
Large events like sporting events
or business conferences present a
particular challenge in this respect.

Taking precautions
against loss of
income
If robust training and clear emergency
procedures and protocols can help
ensure organizations are prepared on
the day, and that all relevant safety
needs are met, the potential financial
implications and exposures also need
to be considered. Loss of revenue,
public and employer liability, and
the costs of cancelling an event – or
evacuating an office or factory – can
present serious business continuity
challenges.
While property damage and business
interruption remain important, new
risks are emerging. These can include
non-property damage business
interruption resulting from streets
being closed after an adjacent attack;
threat impacts, with hoax calls made
to an organization resulting in closure
and subsequent business interruption;
and those that impact casualty
planning (death in service benefits for
example), with terrorism potentially
providing a cat-loss scenario.”
After the event:
communicating in a
crisis
A mishandling of communication can
not only create additional confusion
on the ground, but also create longterm
reputational damage for the
organizations involved.
Information travels faster than
ever, and false rumours have the
potential to significantly damage
brand reputation. Companies cannot
afford to operate without a crisis
management plan in a real-time news
environment.”
This is why reputation management
forms a key part of any crisis
communications strategy.
Having a well-trained and
experienced Public Relations team is
the most effective way to ensure an
effective response, and a fair reaction.

The key elements
of effective crisis
management
There are eight main areas
organizations should focus on to
ensure an effective response to a
crisis,
• Ensure all stakeholders are
addressed including customers,
partners and employees
• Formulate a well-defined plan for
time-critical responses
• Establish a clear chain of
communication
• Ensure a single point of contact for
information
• Secure appropriate insurance
coverage
• Put contingency plans in place
• Develop a media response process
• Practice, practice, practice
your crisis management and
communications plans through
mock scenarios
As you conduct a risk assessment to
develop your crisis management plan,
working with insurance experts Like
Aon can be a good way to minimize
risks, including financial ones. Not
only can they help you to identify
potential risks, and ways to reduce
your exposure, they can also help
provide peace of mind so that you can
take the decision to implement your
plan without worrying as much about
the financial consequences.

Disaster Mitigation
Strategies
Article by Margaret Nasieku

The basic goal behind buying insurance is to make you financially
whole following a loss. You agree to pay a (relatively) small fee to
an insurance company today, causing a small but certain loss to you
now, in exchange for a guarantee from the insurance company that
it will bear the burden of a large but uncertain loss in the future.
Heavy rains in recent days have resulted in floods within Nairobi
and other parts of the Region, causing not only loss of human
lives and animals, but damage to residential property including
household items, commercial properties including stock, motor
vehicles together with infrastructure damage and water borne
diseases too - with a majority of business owners reported to
remain uninsured against this type of natural disaster.
A total of 34,129 people have been confirmed affected
so far with some business premises said to have been
destroyed and many entrepreneurs have reportedly had
to close their businesses due to the water damage.
Many businesses do appreciate the high risk presented by
natural disasters but insurance has never been regarded as highnecessity,
despite the obvious risk of natural disasters. So the main
challenge cited as facing the Kenyan insurance sector is a lack of
awareness of insurance products and limited industry knowledge,
with many individuals seeing insurance as a luxury service.
A person can insure almost anything these days: be it a flight
to Mombasa, rental property, or a valuable phone.

The insurance industry and the government of Kenya have engaged
in concerted effort to make coverage affordable to many farmers
through micro-insurance initiatives that provide viable and affordable
insurance products to farmers. Again, the lack of insurance cover
is implied to be largely based on the perception that insurance is a
complex area shrouded with legal jargon and too much ‘small print.
For most car owners in Kenya, the “Third party cover’’ is usually
the most mandatory type of coverage. However, this coverage
is only limited to damage and physical injuries on third parties
as a result of an accident. For those who use their vehicles often,
stay in a flood zone or park their cars where demonstrations
are likely to happen, know that apart from accidents, there
are many other ways in which their cars can be damaged.
Aon Motor Comprehensive Insurance Cover
Motor vehicle insurance is as old as
the invention of the motor vehicle
itself. After few days of inception, it
was soon realized that man wasn’t
in full control of the machine. It had
the potential to cause harm to which
adversely might result in death. That
is why it was christened a lethal
machine. That is when the thought
of countering its lethality was born.
Motor vehicle insurance was then
born as a result.
This is where Aon Motor
Comprehensive insurance comes in
handy. Aon Motor comprehensive
covers the asset against damage as a
result of other incidents other than
an accident, like fire, theft, vandalism,
animal damage, floods and falling
objects. Although this type of cover
is not required by the Kenyan law, it
may be a good idea especially if you
consider the value of the car you
drive. In fact most drivers of financed
or leased cars are required to acquire
this type of insurance cover so as to
protect the car lender or owner’s
investment.

Aon domestic package
insurance cover
We all value the sanctity of our homes. It is one place
we feel most safe and it is also the last place we
envision suffering of any kind of loss or damage.
What if a raging storm destroyed not only your
perimeter wall but also the contents of your house
or worse still a fire guts down all your worldly
possessions.
This is where the domestic package policy comes in
handy. The domestic package policy is tailor-made to
ensure that you are not rendered destitute in these
circumstances.
The household insurance policy covers loss or
damage as a result of theft, burglary, fire and related
perils to residential buildings, whether owned or
rented.
It incorporates the insured personal liability and
that of their house hold members. The policy also
covers the cost and expenses that the insured incurs
in the event of death of or injury or disease to their
domestic servant arising out of and in the course
of their employment as defined in the Work Injury
Benefits Act.
Aon crop insurance cover
Crop and livestock farming in Kenya are exposed to
many challenges which make it difficult for a farmer
to realize their expected harvest. Some of the
challenges the farmers go through are the need to
plant the right seeds at the right time and place and
using the correct type of fertilizer. However, others
such as changes in weather patterns, excessive rainfall
and drought, earthquakes, diseases, damage by wild
animals, malicious damage, pests, death of animals
etc. are beyond the control of farmers.
In many instances, farmers do require credit from
financial institutions so as to be able to buy farm
input such as seeds, fertilizers, chemicals and farm
implements among others. Farmers also need to buy
chemicals, drugs, construction materials and the
like. Financial institutions however, are not willing to
avail credit to farmers unless they are assured that
the farmer will be able to pay back the money even
in the event of poor returns. Availability of insurance
protection enhances loan repayment as the farmer
is assured of repaying the credit using the amount
paid in by the insurance company. Arrangements
could also be made for the claim proceeds to be paid
directly to the financial institution that extended
credit to clear the outstanding amounts
Did you know that In the event of the buildings being
rendered uninhabitable by any of the perils specified
above the Insurer will indemnify the Insured against:
(if the building is yours)
a. Reasonable additional expense for alternative
accommodation
b. Loss of rent payable to the Insured actually
incurred during the period necessary for
reinstatement of the Buildings

How crop insurance works:
There are two approaches to crop
insurance;
1. The insurance company agreeing
with the farmer on the expected
crop yield per acre for the crop
being insured. The amount to
be insured will depend on the
average crop yield in the area
concerned. If at harvest time, the
farmer gets less than an agreed
percentage of the agreed yield,
the insurance company pays
for the difference. This way the
farmer is assured of some return
even when there is crop failure;
2. The insurance company insures
the farmer against any damage
that may arise out of specific
perils e.g. drought, floods,
disease, fire etc. The farmer
must report such damage to the
insurance company which will
then proceed to assess the extent
of loss and arrange to pay the
farmer accordingly.
The Aon crop insurance provides
cover to the insured standing crop,
and crops from field to floor against;
3. Loss or damage to growing
crop or crop being harvested
caused by Drought, Hail, Fire,
Windstorm, Excessive rain and
Damage by uncontrollable pests
and diseases.
4. Loss or damage to Crop in
storage due to, Fire, Lightning,
Explosion and Special perils
5. Loss or damage during transit to
Market against all risks.
6. Loss due to downgrading of
quality as a result of defined perils
which is always subject to terms
and conditions outlined in the
insurance policy.
Don’t Guess - Know
You should know what
your policy does and -
more importantly - does
not cover. Come to Aon
Kenya for all your insurance
needs.

Celebrating
mothers at
Aon
Article by Kevin Marete
In support of a mother friendly environment, Aon Kenya has gone to
greater lengths to ensure the needs of its working mothers are well
taken of through investing in a child care facility, commonly referred to
as a Crèche.
A crèche could be described as a place where young children are cared
for during the day while their parents are working. The facility can be
more described as a Lactation room which is an exclusive private room
where a breastfeeding mother can use a breast pump in private one or
more times a day.
It has been widely accepted that infancy is the most critical period
for a child’s growth and development. Not only does it nourish the
child’s growth but also exclusive breastfeeding guards children against
diseases such as jaundice, pneumonia, cholera, among others.
One of the major interventions of the Ministry of Health Department of
Nutrition and Dietetics is providing a designated clean, private area for
mothers to express milk or breastfeed their babies and storage facilities
to keep milk safe. In providing a supportive environment, Aon Kenya
Crèche has provided appropriate furniture, utilities and access to water
and soap to clean storage items.
We embracing this culture will certainly improve the retention of our female employees
more so on their valuable skills and experiences, lessening recruitment and retraining
costs.
Benefits that corporate organizations would heed from having a child
care facility are:
• Easier transition back to work after maternity leave
• Improved retention of female employees
• Lower employee absenteeism rates on account of improved child health
• Improved employer employee relations and greater employee loyalty
• Improved company image
• Higher job productivity, employee satisfaction and morale
In support of working mothers all around the globe, let us join hands in influencing best
practices for breastfeeding in the workplace and home.

Jokes &
Quotes
By Sydney Obonyo
The Raise
Sam walks into his boss’s office. “Sir, I’ll be straight with you, I
know the economy isn’t great, but I have over three companies
after me, and I would like to respectfully ask for a raise.” After
a few minutes of haggling the boss finally agrees to a 5% raise,
and Sam happily gets up to leave. “By the way”, asks the boss as
Sam is getting up, “which three companies are after you?” “The
electric company, water company, and phone company”, Sam
replied.
The Salary
Reaching the end of a job interview, the Human Resources
Officer asks a young engineer fresh out of the University, “And
what starting salary are you looking for?” The engineer replies,
“In the region of Kshs.12,000,000 a year, depending on the
benefits package.”
The interviewer inquires, “Well, what would you say to a
package of five weeks’ vacation, 14 paid holidays, full medical
and dental, company matching retirement fund to 50% of
salary, and a company car leased every two years, say, a red
Range rover?”
The engineer sits up straight and says, “Wow! Are you kidding?”
The interviewer replies, “Yeah, but you started it.”
Funny Quotes & One-liners
There is a new trend in our office; everyone is putting names on
their food. I saw it today, while I was eating a sandwich named
Kevin.
We never knew he was a drunk... until he showed up to work
sober.
Don’t be irreplaceable - if you cannot be replaced, you cannot
be promoted.
Today a man knocked on my door and asked for a small
donation towards the local swimming pool. I gave him a glass
of water.
A recent study has found that women who carry a little extra
weight, live longer than the men who mention it.
Do you know that tingly little feeling you get when you like
someone? That’s your common sense leaving your body.
Very strange Newspaper Headlines
“Man Accused of Killing lawyer receives a New Attorney.”
“County to pay Kshs. 25,000,000 to advertise lack of funds.”
“Statistics show that teen pregnancy drops off significantly after
age 25.”
Employee Motivation
The owner of a company tells his employees:
“You worked very hard this year, therefore the company’s
profits increased dramatically. As a reward, I ‘m giving everyone
a cheque for Kshs. 500,000.”
Thrilled, the employees gather round and high five one another.
“And if you work with the same zeal next year, I’ll sign those
cheques!”

Our
Dynamic
Culture

Lydia
Macharia
Director-
Employee
Benefits
Article by Habida Rashid
& Margaret Nasieku
Who has made a significant
impact on her career and why?
Her former boss, who encouraged her
to never shy away from problems but
to face them as they come.
One characteristic that she
believes every leader should
possess?
Integrity
What matters most to her in life?
Faith, her relationship with God
Favourite Kenyan politician and
why?
Not a fan of politics and has no
favourites.
Who would she be without your
accolades?
Christian, Mother, wife of one man.
Lydia, believes in mentoring other
people.
Favourite sport and why?
She is not sporty; Lydiah enjoys
swimming, only when the weather is
nice and hot…
The hardest habit for her to give
up?
She has had to give up tea which was
her daily addition but adds that the
hardest habit for her to give up would
be her daily devotion.
Legacy
She walked in Integrity.
Ugly and live forever or
attractive and live for a year
Ugly and live forever, she believes
beauty is in the eye of the beholder.
Her favourite & least favourite
word
Favourite word-The solution, least
favourite- But…
With Lydia what you see is what you
get. She has a no nonsense look but
when you interact with her She is very
charming. We were quite impressed
with her simplicity and her beliefs.

Staff wellness
activities
Joe Onsando – CEO Aon Sub-Sahara Africa & MD Aon Kenya Insurance Brokers Ltd
(in Blue shirt) and David Waithaka – Head of Risk & Compliance Aon Kenya Insurance
Brokers Ltd (in Brown shirt) undergoing various nutritional tests
Joshua Karani – Director HR & Administration Aon Kenya Insurance Brokers Ltd \
undergoing a blood sugar test
Aon Wellness Champions/Delegates after being presented with certificates
Justus Ochieng – General Manager, Corporate Business lines, Aon Kenya Insurance Brokers
Ltd (left) presenting a certificate of recognition to Margaret Nasieku (Aon staff and wellness
Delegate/Champion)
Dr. Wangai giving a health talk to Aon Kenya staff
Aon Kenya staff from extreme left: Justus Ochieng, Lawrence Njenga, Agnes Chege,
Joshua Karani and Michael Migwi dancing to some good music at the Health talk forum

Management
Liability Insurance
Policy
Article by Martin Kangethe

What is Management
Liability Insurance?
Protects you and the company against
the risks and exposures of running
the company (i.e. your liability of
mismanagement)
What does
Management
Liability Insurance
cover?
• Directors & officers liability
• Employment practices liability
• Statutory liability
• Entity coverage
• Crime protection
• Legal representation costs
Directors & officers liability
Will protect the past, present and future directors
and officers plus everyone else involved in the
management of a company for claims alleging a
wrongful act and for which the company does not
grant indemnification to such person
Claims examples
1. Unfair competition
2. Fraud/breach of fiduciary duty
3. Misappropriation of trade secrets
4. Insolvent trading
5. Manslaughter
Case study
Employment practices
liabilities
Provides cover to the company, directors, officers
and employees for the claims made by current, past
and prospective employees for issues arising from
employment practices, including harassment, unfair
dismissal and other employment issues.
Claims examples
1. Bullying/harassment
2. Unfair dismissal
3. Discrimination
Case study
Dr Mark Colson v Barwon Health [2013] FWC 8734
ASIC Brings Criminal Charges against Former
Kleenmaid Directors

Statutory liability
Covers certain individuals and the company for
fines and penalties from operating the business
including fines related to workers compensation and
occupational health & safety
Claims examples
1. Occupational health and safety penalties
2. Other pecuniary penalties (civil penalties)
Case study
Inspector Christensen v P & M Quality Smallgoods Pty
Ltd [2013] NSWIRComm 91
Claim examples
1. Wrongful act/fraud
2. Shareholder dispute
3. Shareholder employment
Crime protection
Provides cover to the company for loss arising from
dishonest acts such as theft and fraud by employees
including theft of stock
Claim examples
1. Theft by employee
Entity coverage
Extremely relevant for companies that are owned by
the directors by providing cover to the company for
actions arising from managerial matters.
A claim against the company will cause the same
financial hardship to the owner therefore this cover is
extended to provide protection to the company
2. Theft of inventory
3. Theft by contractor/consultant
Case study
Clive Peeters

Professional
Indemnity Cover
Article by Martin Muthui
Professional indemnity insurance, often referred to as Professional
Liability Insurance or PI insurance, covers legal costs and expenses
incurred in your defence, as well as any damages or costs that
may be awarded, if you are alleged to have provided inadequate
advice, services or designs that cause your client to lose money.

Example of a claim
A graphic designer was briefed by
their client to provide price tags that
would fit round the stem of Christmas
trees. The tags would need to
withstand exposure to the elements
and stay fitted to the tree while it
grew. The tags did not survive the
test of time; the ink ran, rendering
them useless to the client. The client
lost money due to this oversight and
took legal action against the graphic
designer for professional negligence.
The graphic designer’s professional
indemnity insurance policy covered
their legal costs and compensation
payments to the client, a total cost of
over Kshs.450,000. The client didn’t
pursue their claim for the full cost of
the labels; if they had, the claim could
have cost as much as Kshs.5,000,000.;
Do I need professional indemnity insurance?
Don’t Guess - Know
You should know what
your policy does and -
more importantly - does
not cover. Come to Aon
Kenya for all your insurance
needs.
Many professions need to have
professional indemnity insurance
as part of their respective industry
body’s regulatory requirements.
Even if you are not obliged to have
PI insurance, without it, you could
be liable for thousands of pounds
worth of legal fees and compensation
payments – not to mention lost
income from the time spent
defending any allegation.
Professions that might need
professional indemnity insurance
include (but are not limited to):
• Management and business
consultants such as marketing
consultants, training consultants
and education consultants
• IT professionals including
IT contractors, consultants,
programmers and developers
• Recruitment agencies and
recruitment consultants
• Designers such as web designers,
graphic designers and interior
designers
• Fitness professionals including
personal trainers, dance teachers
and yoga instructors
• Teachers and tutors including
private tutors
• Doctors and Lawyers
How much does professional
indemnity insurance cost?
The cost varies depending on a
number of factors, including the
amount of cover, but Market Direct
offer PI insurance cover from for a
wide range of professionals.
What does ‘claims made’ mean?
A ‘claims made’ policy provides
cover for claims which are made and
notified to the insurer during the
period of insurance.
This means that provided the
wrongful act occurs during the period
of insurance, and you report it to the
insurer during the period of insurance,
it will be covered. However, if the
policy is cancelled or not renewed,
cover will end and any subsequent
claim – regardless of when the
wrongful act occurred – would not
be covered by that policy. As such,
it’s important to have professional
indemnity insurance cover in place –
even between contracts or work – to
ensure your business is protected. All
Markel Direct professional indemnity
insurance policies are on a ‘claims
made’ basis.
This contrasts with a ‘claims occurring’
policy which provides cover for claims
which occur during the period of
insurance. Professional indemnity
policies are rarely, if ever, written on
this basis. It is more commonly found
with public liability and employer’s
liability policies.

About Aon Kenya
Aon Kenya is a leading provider of insurance
broking, risk management and human capital
consulting solutions. We are part of Aon (NYSE:AON), a
global giant in the insurance arena with more than 72,000
colleagues worldwide, Aon unites to empower results for
clients in over 120 countries via innovative and
effective risk and people solutions and through
industry - leading global resources and technical
expertise. Aon has been named repeatedly as the
world’s best broker, best insurance intermediary,
reinsurance intermediary, captives manager and
best employee benefits consulting firm by multiple
industry sources. Visit www.aon.com for more
information on Aon and
www.aon.com/manchesterunited to learn about
Aon’s global partnership and shirt sponsership
with Manchester United.
Aon Kenya Insurance Brokers Limited
Contacts
Nairobi Office
Aon House, Processional Way, Off Nyerere Rd
Tel: 254 020 4974000 / 5000
Cell: +254 722 612948 | +254 733 617500
Fax: +254 20 2722740 | +254 20 2722574
Email : marketing@aon.co.ke
Mombasa Office
Aon House, Kengeleni - Nyali, Nyali Rd
Tel: +254 41 473898 / 473135
Fax: +254 41 473101
Email: aonmsa@aon.co.ke
Kisumu Office
Tuffoam Mall, Jomo kenyatta Avenue
Cell: +254 719 04451
Email: marketing@aon.co.ke
Nakuru Office
Baraza Plaza, Kenyatta Avenue, 1st Floor
Cell: +254 719 044 4451
Email: marketing@aon.co.ke
Eldoret Office
KVDA Plaza, 4th Floor Oloo - Street
Tel: +254 53 2061954 / 206 2550
Fax: +254 53 2061074
Email: aoneld@aon.co.ke
Meru Office
Tuskys Mall, Mwendanto Road,
Ground Floor Cell: +254 719 044 4461
Email: marketing@aon.co.ke