What Risks Businesses Face Without Proper Insurance


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Small Business Insurance

What potential risks might a business face if it operates without adequate insurance coverage?

I'm concerned about the potential risks and negative consequences that my business might face if it operates without adequate insurance coverage. Could you please elaborate on the various types of risks—both immediate and long-term—that could arise, and explain how having the right insurance policies in place could provide protection and peace of mind for business owners like myself?

Nov 18, 2024 | Brian Foster, Akron, Ohio
Answer
Mark Fitzpatrick
Head of Insurance, MoneyGeekUpdated December 17, 2024

Operating without adequate insurance coverage exposes businesses to financial losses from legal claims, property damage, injuries or reputational harm. Without insurance, businesses may have trouble covering legal fees, settlements or damages, potentially leading to bankruptcy or closure.

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