5 Risks of Operating a Business without Insurance
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5 Potential Hazards of Running Your Business without Insurance

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Hazards of Running Your Business without Insurance in San Diego, CA


The many expenses of running a business may tempt some new business owners to ignore the need for business insurance. While you may hope you’ll never need to file a claim with an insurer, not being able to do so in a time of crisis may prove impossible for your business to recover from. If you’re a new or experienced business owner who’s considering operating your business without insurance, you should first take a moment to consider the following risks. 

1. Legal Problems

California has specific laws governing the types and amounts of insurance business owners must maintain. For example, general liability insurance is required for any business that employs at least one person. Additional insurance may also be required for protection against property damage and natural disasters. It’s a good idea to make sure you know exactly what the laws are where you do business to ensure your company is in compliance. 

2. Harm to Employees

Some of the policies you’re legally required to carry ensure your employees are taken care of if the need arises. Workers’ compensation insurance guarantees your employees will receive medical care and any needed financial compensation if they’re injured while working for you. You’re also required to pay for state and federal unemployment insurance in case an employee is unable to continue working due to no fault of his or her own. 

3. Business Interruption

A disaster such as a fire or flood could deal a death blow to your business if you don’t purchase an insurance policy that protects you against these types of threats. Without insurance, you may find yourself needing to raise a considerable amount of money at a time when you’re unable to generate revenue through your business.

4. Loss of Property

Your business’s most important possession is the property itself. A good property insurance policy is needed to protect this asset. Don’t skimp on this expense. You don’t want your name added to the long list of former business owners who were unable to repair damages to their buildings and equipment because they tried to save a few dollars on the cost of property insurance.

5. Financial Loss

Just because you can afford to pay out of pocket for damage to your business doesn’t mean it’s a good idea to do so. The damage caused by a flood in the bathroom or a fire in the kitchen could cost you thousands of dollars to repair. This is money that won’t be available for the operations, growth, and expansion of your business.

Owning a business involves assuming certain kinds of risk, but operating without business insurance is a risk you shouldn’t take. The reasons listed above are just a few of the factors that make this type of coverage an absolute necessity for many businesses. For reliable, affordable business and commercial insurance as well as homeowners, renters, motorcycle, and auto insurance Chula Vista, reach out to the experienced professionals at Altra Insurance Services. Call us today at 619-474-6666 to find out how we can meet all your insurance needs.

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