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.
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.
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.
What’s more, many business licenses and permits rely on you having an insurance policy in place. If you take away the insurance coverage, you threaten your business’s licenses and permits.
We are here for you throughout this challenging time. We work with you to find the right insurance policy for your current budget. Contact Bell Black Insurance. Serving Idaho Falls, Island Park, Driggs, Victor, Swan Valley, Ashton, and the neighboring communities in Idaho, as well as Jackson and Star Valley in Wyoming; we are ready to get you covered today.