Running a Business Without Insurance: What are The Risks?

Insurance comes in many different forms with insurance companies offering everything from car insurance to travel insurance for individuals. Of course, one of the most important types of insurance that are on offer is business insurance including liability insurance. This is why it’s very beneficial using an online service to compare auto insurance quotes for a cheaper rate and better coverage.

Business insurance

When you run a company that doesn’t have business insurance, there are many risks that you face. Here, we are going to talk you through some of these risks. Keep reading to find out more.


One of the biggest risks that you face when you run a business without insurance is the potential for accidents to take place. This could be when a customer enters your premises and slips and falls on some water that was not cleaned up or they get injured from something falling onto them. If you don’t have the right insurance, you could face huge fees when the customer claims against your business.

An example of this would be when a carpenter is working on a project and a customer enters and injures themselves on machinery or tools. Without carpenters insurance, there is a huge risk of a claim but with this insurance, the carpenter is protected.

The Law

Another risk that you face when you run your business without insurance is in breaking the law. While all types of insurance are not mandatory, you will find that you need to have Employer’s liability insurance if you have one employee or more. This is now a law which means that you will be breaking it by not having this insurance. This law helps to protect staff in the event of an accident.

Property Loss

Any business will have assets whether that is premises, stock or tools that are necessary to complete a job. When you don’t have business insurance, you risk losing this property and not being able to get any compensation for it. With this type of insurance, you can replace the items that you have lost and keep your business afloat.

Broken barber shop


No business owner wants to have to close their business temporality for any sort of reason, but this is not always avoidable. Of course, those with business insurance will be in a much better situation when a leak occurs or there is a fire because they will be covered by their insurer. This is a risk that you take when you don’t get business insurance as you will have to deal with the interruption to your business with no additional financial help. Consider this when deciding if you should get business insurance.

Final Verdict

When it comes down to it, you need to make sure that you have business insurance to protect your company and your finances. Without this type of insurance, you face a lot of risks and they could end up costing you your business. Think about how you will protect yourself from any type of claim and ensure that your business can get back to normal after an incident that forces it to close.