Good question. To easily figure out this answer, ask yourself the following:
Can you, someone who has a financial interest in you or your business, afford to self-insure against a loss? Typical losses include: death, disability, major illness, business partner resignation/retirement from a company, etc. If the answer is no, you have an exposure and are at risk of a loss. Thus, you need insurance. Once identified, now it’s a matter of whether or not you can afford the premium to transfer that risk to an insurance company.