What potential consequences may arise from not having insurance?

Not having insurance can lead to significant financial loss and legal liabilities. Without insurance coverage, individuals or businesses are unprotected against unforeseen events such as accidents, natural disasters, or liabilities arising from injury or property damage. In the event of a loss, the affected party would have to bear the full financial burden themselves, which can be devastating.

Additionally, if a person or business is found liable for injuring someone or damaging their property, they could face legal claims that result in costly settlements or court judgments. These financial burdens can jeopardize personal savings, disrupt business operations, and even lead to bankruptcy in severe cases.

In contrast, having insurance helps mitigate these risks by providing financial protection and peace of mind, allowing individuals and businesses to recover more easily from unexpected events.