Businesses buy insurance to protect themselves against financial losses resulting from lawsuits or physical damage to company-owned property. A business that has no insurance may be unable to continue operating after a loss occurs.  Business insurance protects your company from losses that could significantly affect your operations. Examples are a fire that destroys your company's building or a large bodily injury claim that results from a slip-and-fall incident. Such events can be very costly. If they are not covered by insurance, they could bankrupt a small company.