Why Canceling Business Insurance May Cost More Than Keeping Your Coverage

18 Jun Why Canceling Business Insurance May Cost More Than Keeping Your Coverage

As a business owner, you may constantly be looking for ways in which you can cut back on expenses without sacrificing your insurance coverage. However, you may know that your business cannot open for a couple more weeks or months because of COVID-19, and you’re tempted to cancel your commercial insurance to save a few pennies. After all, there’s no risk of a customer slipping and falling if your business doors are locked, so why pay for general liability? It turns out, canceling your commercial coverage may cost you more than keeping your policy.

• No refund

If you cancel your insurance policy, keep in mind that it’s likely you will not get a refund. Most insurance carriers have a clause that states you have to pay a percentage of the premium if you cancel your policy early, too. Always read through the fine print carefully before taking any action.

• You may end up paying more

If you do cancel your policy, you will need to take out a new policy when your business reopens. This means that you will have had a period of weeks or months without any insurance coverage in place. Insurers will see this as a large red flag and may hike up your premiums. In turn, you may not have saved any money if your premiums skyrocket.

• You could lose business licenses and permits

Many commercial licenses and permits rely on you to have insurance coverage before being issued. If you cancel insurance coverage, you risk losing your permits to operate, too.

Business insurance doesn’t have to cost the earth. Skip the search of finding the right commercial insurance – Visit the team at Doughtery Insurance instead. We offer quality commercial insurance for business owners across Illinois, Wisconsin, and Indiana.