When something goes wrong—whether it’s a slip and fall, property damage, or a contract dispute—many people wonder what their options are. One common question we hear is: “Can you sue a business if they don’t have insurance?” The short answer? Yes, you absolutely can. But whether or not you’ll be able to collect damages is another story.
You Have the Right to Sue
Regardless of whether a business is insured, you have the legal right to file a lawsuit if you’ve been harmed or wronged by that business. Business insurance (like general liability or professional liability coverage) is not a legal requirement in every case—it’s financial protection. A lack of insurance doesn’t exempt a company from being held responsible for its actions.
Why Business Insurance Matters
Here’s where it gets important: insurance is what helps businesses pay for legal costs, settlements, and judgments. If a business doesn’t have insurance and you sue them successfully, they’ll have to cover those costs out of pocket. That could mean:
- Delayed compensation
- Lower settlement amounts
- Difficulty collecting your judgment if the business has limited assets
In extreme cases, a business might even file for bankruptcy to avoid paying a settlement.
Suing a Business Without Insurance: What to Expect
- You can still win the case. The court doesn’t base its decision on whether the business is insured—it focuses on liability.
- Collecting may be harder. A business without insurance might not have the liquid assets to pay you.
- The business owner might be protected. If it’s an LLC or corporation, you usually can’t go after the owner’s personal assets unless there’s gross negligence or fraud.
Protect Yourself as a Consumer
Before hiring a contractor, vendor, or service provider, always ask if they’re insured—and request a certificate of insurance (COI) if needed. This small step can save you major headaches later.
Protect Yourself as a Business Owner
If you’re a business owner reading this and you don’t have coverage—you’re taking a huge risk. One accident, one mistake, one lawsuit could financially ruin your business. The cost of a general liability insurance policy is often minimal compared to the potential cost of a lawsuit.
Need Insurance for Your Business?
At Eugene C. Yates Insurance Agency, we specialize in affordable, high-quality business insurance policies tailored to your industry and risk level. Don’t wait until it’s too late. Let us help protect what you’ve worked so hard to build.
📞 Call us today or request a free quote online!