Alarming statistics produced by the Australian Chartered Practising Accountants have prompted business advisors throughout the Highlands to warn against trading without insurance.

In a survey involving 600 small businesses and 105 accountants, 59 per cent would consider operating without insurance if they were confident their assets could be protected.

Although only three per cent of businesses surveyed have made the leap into uninsured waters, concerns were raised over the rising attitude towards such a potentially dangerous course.

Highlands insurance broker Peter Cook attempted to put concerns to rest, saying the insurance industry was undergoing a global shake-up.

"Most insurers used to provide a whole variety of cover, but now they are starting to specialise," Mr Cook said.

"Because of this specialisation people looking for insurance for out of the ordinary activities will really have to shop around to find an insurer that specialises in what they want to do."

Mr Cook said he wouldn't be surprised if in two years time much of the concern about insurance would have subsided as consumers got used to industry changes and insurers finished redefining their role.

For the meantime Mr Cook said it was important for proprietors to keep on trading with appropriate cover.

Moss Vale chartered practising accountant Henk den Hertog not only outlined the dangers of trading without insurance, he also pointed out how to find the most suitable cover.

"It may kill your business," Mr Hertog said.

"For businesses starting out insurance is almost a requirement."

Mr Hertog said although businesses may strike difficulties when looking for the right insurance, seeking advice from industry associations and business advisors (whether it be solicitors, accountants or insurance agents) was critical in making the right choice.

Southern Highlands Business Chamber president Michele Scamps supported Mr Hertog in discouraging business operators from operating without insurance.

Harking back to the insurance forum presented by the business chamber earlier this year, Ms Scamps said that if an insurance broker told a business person that they are unable to provide the necessary cover, then it would be time to get a new broker.

"There should always be suitable cover, but I guess that cost is another issue," Ms Scamps said.