Having your own business of any kind can feel like a risk in itself and without entrepreneurial types who forge ahead despite the risks involved, society and the economy would certainly suffer.

However, some business types are riskier than others and more likely to lead to personal injury and property damage, as well as risks of employee accidents or damage to their premises and equipment in the operation of the business. 

For the best value business insurance, speak to Compare Insurance today!

Table of Content

High risk business insurance cover

We have all heard and read news stories about the difficulties of obtaining insurance cover for certain business types due to the high levels of risk involved in their operation and/or  the increased likelihood of claims.

Here is a guide to the importance of insurance for some of these business sectors as well as a guide to insurance cover for high risk businesses.

High risk business sectors

The following types of business are some that could be considered ‘high risk’ in insurance terms. Not all may immediately seem to be physically risky, however, they do present an elevated risk of accidents, injuries, or claims.

It is a busy time for the construction industry and construction businesses are certainly in demand at present. However, construction is an inherently high risk industry. 

Whether you are a sole trader working on your own, or a large construction company with many employees, the construction site environment has many hazards and you will need to protect your business.

From risks associated with machinery and equipment, use of hazardous materials, the danger posed by electrics, fire and working at height, as well as the nature of working in a public or semi public place, insurance for construction businesses must encompass many types and forms of cover. 

Construction insurance may also offer protection where accidents affect employees and members of the public or their property. Insurance cover can also help to minimise losses associated with equipment failure, weather related and other unforeseen project delays, ensure regulatory compliance and customer confidence in your business.

The hospitality industry is currently facing many challenges due to increasing costs of doing business with rising energy and staffing costs, and the cost of living crisis forcing customers to tighten their belts. Protecting your business with hospitality insurance may seem like another overhead that you do not need.

However, food businesses including restaurants, cafes, takeaways, pubs, and entertainment venues all face risks unique to their sector with high footfall, busy kitchens and serving areas, and staff engaged in manual tasks all adding to the likelihood of something going wrong.

Having adequate insurance cover in place will give you peace of mind that your business is covered and financially protected if someone is injured or there is property damage, as well as protection where your business is affected by theft, fire, flooding, or your business is unable to trade following an unforeseen event.

Childcare centres such as creches, preschools, and childminders are busy environments. Of course your childcare business focusses primarily on the safety and security of the children in your care but childcare environments can also be high risk areas.

You will need insurance to protect your business against the risks of accidents to the children and your staff, as well as protection for your premises and equipment. If your business is closed or your childcare centre or its contents are damaged by fire, strom, or theft, or flooding, for example.

Childcare insurance also offers cover where a claim arises when a parent is unhappy with any advice you provide in your professional capacity as a childcare provider.

If you are the owner of a gym or leisure centre business, you will know that it can be difficult to get insurance cover due to the high risk of claims.

Insurance for the gym and leisure industry will offer protection where you are the subject of a personal injury claim arising from an accident or injury to a member of the public such as a slip or fall on a wet floor. You would also be covered where your business premises are damaged by fire, flooding, or theft.

Professional indemnity insurance may offer protection where your professional advice, as an instructor or personal trainer, leads to injury or loss for a client.

Driving all types of commercial vehicles or transporting goods, usually to tight deadlines on busy or poor roads, carries a high level of risk that something can go wrong.

This applies to logistics and delivery drivers, but also to any business where workers are driving a company vehicle such as a truck, van, or jeep. The risk is further elevated where the vehicle is transporting hazardous materials.

Where one of your company vehicles causes injury or property damage to another person, or where the vehicle is damaged leading to costly repairs, then your business will be protected by commercial motor insurance.

Commercial motor insurance may also offer goods in transit insurance and cover for tools and equipment that you need to carry in your vehicle.

Factors that contribute to high risk in your sector

Any business where there is increased risk of injury or property damage to members of the public, customers or those who use the business, or to workers employed by your business may be considered higher risk by insurance companies.

Here are some factors that higher risk businesses have in common:

Some businesses are considered inherently higher risk than others due to the risk of injury or property damage or the risk they present to employees.

Manual labour, handling hazardous materials, or risk of accident or injury to those who use the services of the business, such as leisure centres or creches, can all lead to your sector being considered higher risk.

If your business is open to the public or has a high footfall then the likelihood of claims is increased, as it is where your employees drive a company vehicle as part of their working day.

Unfortunately if your business has made a claim in the past , you will likely be considered higher risk by an insurer when looking for business insurance.

If your sector or industry has a higher than average number of claims or a history of high value claims, then you will find that your business is considered higher risk by insurers, no matter how careful you may be as a business owner.

Conversely to the previous point, if you have a brand new business or operate in a relatively ‘new’ industry, you may find it difficult to get insurance cover.

If your sector is innovative or ‘unproven’, or you do not have a track record of operating your business without a claim on your business insurance policy then insurers may be cautious in providing your business with cover.

As many tailored business insurance packages provided to different business types have an element of commercial property cover, then the location and security of your business will impact the level of risk it is deemed to present to insurers.

Areas prone to flooding or subsidence, businesses that have a higher than average fire risk, and whether or not your business is considered to be located in a higher crime area may all impact whether your business is considered higher risk to an insurance company.

How to choose the right insurance policy for your business

1. Assess your risks

Consider the types of risk associated with your business. If you have staff working for you, you may need employers’ liability insurance, you may need cover for tools or equipment, you may need commercial property insurance if you have a premises. 

You will most likely need public liability insurance if you are open to the public or need cover in case the operation of your business could cause injury or property damage to a member of the public. 

Cyber insurance is required by many businesses who sell online, and professional indemnity insurance may be required if you give advice to clients or customers.

If you have a company vehicle you will need commercial motor insurance by law and you may wish to cover goods in transit.

You may also wish to consider business interruption cover in case your business is forced to close for a time due to an unexpected event.

High risk industries

2. Consult a specialist business insurance advisor

Business insurance is usually flexible and tailored to the size and nature of your business and sector. But when you operate a high risk business, it can be challenging to find the right business insurance cover.

Compare Insurance can offer you a free consultation with a specialist business insurance advisor with excellent insight into the Irish business insurance market and can help you to get excellent cover that you can rely on to protect your high risk business.

Assess your risks

3. Regularly review your insurance cover

As your business grows and evolves, so too do the risks that it faces. It is essential that your business insurance cover matches the needs of and risks your business.

Regularly reviewing your business insurance will allow you to concentrate on the challenges and demands of growing your business with full peace of mind that it is protected should the unexpected occur.

Regularly review your insurance cover

Get a business insurance quote today!

If you run a high risk business, you may have concerns about financial loss, the risk of claims, or even bankruptcy if your business is hit with a claim or an unexpected event occurs.

However, Compare Insurance can find you excellent business cover tailored to the risks and needs of your business. Our Central Bank regulated advisors can get you free business insurance quotes for your high risk business so you can compare and get the best cover.

Fill in our online assessment, or call or email us and speak to a qualified financial advisor today.

Author: Séamus Ó Doirín | Chief Insurance Editor

Séamus Ó Doirín is a Donegal based QFA who has been writing about insurance since 2020. His main focus is getting people the best value for insurance in the Irish market. His writing covers all areas of insurance and is a valuable part of the Compare Insurance team. 

Insurance for High Risk Businesses

Tailored Business Insurance Quotes

We are Ireland’s first impartial insurance comparison website.

Related Topics

> Business insurance overview
> Insurance for sole traders
> Insurance for the fitness industry
> Event Insurance

Recent Articles

Get the lowest premiums by comparing all the policies in the Irish market

Choose your insurance type, fill out the relevant assessment and speak to a central bank regulated insurance advisor