As a business owner, you may have been hit hard from COVID-19, and may be looking for ways to save money. As a result, you’re tempted to cancel your business insurance coverage until your company is back up and running and turning a higher profit. While it may sound like a good solution, the reality is that you could end up paying more in the long run. Before you cancel your commercial insurance, here is what you should know.
You won’t get a refund. Most insurance policies have a clause stating that they will not offer a refund if the policyholder chooses to cancel their insurance early. What’s more, you may even have to pay a percentage of the premium, meaning you would save little to no money.
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.
Are you ready to find the right commercial insurance coverage for your needs? Contact the team at Gee-Schussler Insurance Agency in Orland Park to get started on your tailored cover.
