Risks of Running a Business Without Insurance

Modern restaurant interior with tables, chairs, and cozy lighting, representing a thriving Colorado business covered by restaurant insurance.

If you’re starting a new business, one of the first things you’ll want to do is consider the different types of insurance coverage you need. A business owner can protect against a number of common risks, including property damage, injury, and liability. You’ll need to protect your personal assets (your home, car, and personal belongings) from business-related liabilities, and you’ll also need coverage to protect your business assets from claims by customers and other entities.

Risks Without Business Insurance

Running a business without insurance is never a good idea. Not only can you potentially put your personal assets at risk, but you may also be putting your business at risk as well. There are several risks to running a business without insurance, including the risk of lawsuits, property loss, and liability issues. In case anything goes wrong, having business insurance could save your business.

While you may think that protecting your assets would be enough to get your business started, you can’t afford to overlook the other legal obligations that comes with opening up shop. For instance, you may need to cover your employees with workers’ compensation insurance, which is a state-mandated insurance plan that covers medical expenses and replaces lost wages in case of work-related injuries or illnesses.

office team
Insurance gives you peace of mind that you, your employees, and customers are all protected in the event of an accident occurring on the physical premises.

Business Insurance Benefits

Business insurance is not only necessary for protecting your personal assets, but there are many financial benefits of owning a business that can be protected by insurance. Business insurance protects your company’s physical assets and financial assets, including your building, equipment, inventory, and income. And it protects you from liability for personal injury and property damage.

Get a quote for a business insurance policy today.

Reasons to Get a Liquor Liability Policy

wine bar

Liquor liability is a type of insurance that protects your business from the actions of intoxicated people. If you sell alcohol, this type of coverage is absolutely essential. This is true if you own a nightclub, a bar, a restaurant, or any other type of business that sells alcohol. Unfortunately, you could be held liable for auto accidents, fights, and injuries resulting from people who get drunk at your establishment. That is, unless you have a liquor liability policy. Here are some of the reasons you should add this policy to your coverage.

How it Works

This type of coverage is financial protection against the unknown. After all, you can’t be responsible for the behavior of people once they leave your business. But the law says that you can be directly connected to the outcome of their actions. There’s just no reason for you to risk your business — including assets and your reputation — on a stranger’s drunken mistake. A liquor liability policy protects your business against lawsuits that result from property damage or personal injury.

bar and liquor liability insurance
If you sell, serve, or manufacture alcohol, then you need liquor liability insurance.

Why it’s Important

You need this type of coverage if you sell, distribute, or manufacture alcohol. Otherwise, you could be tied legally to the accidents of anyone who purchased your products. For instance, someone could cause an auto accident after leaving your restaurant. Then, the victimized party could try to seek damages from both the driver and you, as the seller of the product. It’s important to realize that a liquor liability policy is separate from your typical general liability coverage. If you thought you had everything worked out, now is a good time to reevaluate your coverage and ensure that you have the protection you need.

Don’t risk your business because you didn’t have the right coverage. Reach out to Prince Insurance to get a quote and make sure you can operate confidently and safely with the right insurance policies in hand.