The Central Bank has urged customers seek alternative cover.
Up to 50,000 insurance customers in Ireland are unsure if they are still covered after an underwriting company shut down.
Danish company Qudos has gone into liquidation, with payouts on claims being put on hold.
According to The Irish Independent, many customers are self-employed or small businesses who may not know that their cover is underwritten by Qudos.
Hosting Newstalk’s Breakfast Business this morning, the paper’s business editor Gavin McLoughlin said policy holders are taking a big risk if they don't find cover elsewhere.
“The liquidators who have taken control of the company have put claims payouts on hold,” he said.
“So that means that if you are a Qudos customer and you don’t switch your insurance, you are taking a big risk because you may not get a payout on a claim.
“So make sure to check your policy if you think Qudos could be your ultimate insurance provider.”
The Central Bank has said it strongly recommends that Qudos customers seek alternative cover.
Meanwhile, Mr McLoughlin said the situation will raise fears that customers of other insurance companies will be hit by levies to cover unpaid claims.
Liquidators appointed to the company are expected to provide further updates within the next couple of weeks.