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Why Canceling Business Insurance May Cost More Than Keeping Your Coverage

a person picking up a commercial phone

Because of COVID-19, you may be wondering if you should keep your commercial insurance in Renton, WA. If your doors are going to be temporarily closed for a little bit longer, it is tempting to pause or cancel coverage until your business resumes again. However, there are a few things to consider before calling your insurer to cancel cover.

 

Think Twice Before You Cancel Commercial Insurance Coverage

 

You will be at risk. Businesses are always at risk of suffering from accidents and injuries – even when your storefront has shut up shop for a bit. Floods from burst water pipes, a broken window from vandals, and cyberattacks on your website – all are possible at any time. Could you handle the recovery costs of these incidents on your own? In a time when many businesses are already struggling, such an incident could force your business to close its doors for good.

 

You won’t get a refund. Most insurance carriers have a clause in place that states you do not get any refund if you cancel your policy early. In fact, you may end up having to pay a percentage of your policy if you cancel coverage, meaning you would save very little.

 

Insurance will cost more when you need it again. Most insurers do not allow you to pause coverage, which means you would have to cancel your policy and then take out a new one when your business is operating again. However, insurers often see a gap in coverage as a red flag, meaning your premiums could be a lot more than what they once were. In the end, you may not end up saving money at all.

 

The right commercial insurance policy doesn’t have to cost the earth. For a policy to suit your business and property at the right price, contact the team at Humble & Davenport Insurance today.