What could happen to my small business if I dont have the right insurance?

12 Oct 2026, 22:54
Q A Reader Asker

What could happen to my small business if I dont have the right insurance?

A CoverWise Team Answered by

Some business insurance is not legally required, but you could have to pay compensation, legal costs or repair bills yourself if something goes wrong. Employers’ liability insurance is generally required if you employ staff, and certain vehicles must have motor insurance; failing to meet these requirements can lead to penalties. A client, landlord or lender may also require specific cover, and operating without it could put a contract or premises at risk. Check the rules for your business on GOV.UK and consider speaking to an FCA-authorised insurance broker about suitable cover.

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