There’s no doubt that COVID-19 has hit small and large businesses alike. Unfortunately, yet unsurprisingly, many have had to temporarily close their doors or pause their services. As a result, many business owners have been looking for ways to save money in every which way. While you may be tempted to cancel your business insurance until you feel you need it, doing so may cost more than you realize.
What to Consider Before Canceling Your Commercial Coverage
- You won’t get a refund
If you choose to cancel your insurance policy, you won’t get a refund for all those premiums previously spent. In fact, most commercial insurance policies have a clause that state that the policyholder needs to pay a portion of the remaining premiums if they do cancel their policy early. As a result, you won’t get money back and you may even need to spend more money.
- Your business still faces risks
Even if your doors have temporarily closed, your business still has daily risks. From theft to a burst water pipe to cyber threats, there are many risks that insurance policies address. If you take away that insurance, you are leaving your company exposed to financial and physical damage.
- You will create a gap in coverage
If you cancel your commercial insurance policy now and then take one out when you’re back up and running in a few weeks or months, you will have created a gap in coverage. Insurers will see this as a big red flag and will, most likely, increase your premiums. Because of this, you may have ended up saving little to no money.
Working with a reliable commercial insurance agent can help you find the right policy that suits your business and budget. Contact the team at Northeastern Group Ltd. to get started on your tailored coverage during this challenging time. We serve New York, New Jersey, Connecticut, Pennsylvania, Georgia, and Florida business owners.
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