The study critically explores purchase and use of insurance by financial services firms (FSFs) in Nigeria to manage risks associated with their operations. Both quantitative and qualitative techniques are used for the study. Mixed-method design and methodological triangulation are adopted to ensure a holistic understanding of purchase and use of insurance by FSFs in Nigeria. Four data collections methods (Le. the literature, document analysis, survey and elite interview) are utilised for the study. The study adopted interpretivist philosophy, and theoretical foundation of the study was developed based on Knight (1921) classical theory of risk. Risk management does not eliminate uncertainty; rather, it minimises financial consequences of uncertainty. Insurance is part of wider and integrated system of risk management. In the past, it was thought that risk aversion motive is the primary motive in the literature for purchasing insurance since Pratt (1964) and Arrow (1971 ). However, risk aversion does not satisfactorily explain corporate demand for insurance as firms are considered less risk-averse than individuals (Mains, 1983; MacMinn, 1987; Mayers and Smith, 1990; Yamori, 1999; Goldberg, 2009). The literature revealed that studies on corporate demand for insurance in the literature have been carried out in the context of developed countries; thereby, providing little insight in terms of analysis on purchase and use of insurance by firms in developing countries, such as Nigeria. The study fills the gap, thereby contributing to knowledge. Moreover, beside those factors influencing corporate demand for insurance in the literature; the study identifies an additional factor influencing FSFs (corporate) insurance purchase practices which suggested that: institutional/corporate (including FSFs) ownership or interest in insurance company influence corporate demand for insurance. This implies that there is a positive correlation between FSFs (institutional) ownership or interest in insurance companies, and insurance companies from which FSFs purchased insurance. This is a plausible finding and contribution to knowledge as the literature does not indicate that institutional ownership or interest in insurance company influence corporate demand for insurance. The study identified insurance policies that are suitable for managing risks associated with FSFs operations; and highlighted factors that influence insurance purchase practices of FSFs in Nigeria. Generally, the findings suggested that: insurance is suitable for managing FSF risk exposures; FSFs in Nigeria purchase and use insurance to manage risks associated with their operations; Nigeria's FSFs which have insurance company subsidiaries (parent or sister) purchase insurance partly or wholly from their insurance subsidiaries.