Dropping your commercial insurance on Long Island, NY may seem like an easy way to trim your budget during COVID-19. If your business’s doors are shut and locked for the next few weeks or months, you may think that you can cancel your business insurance to save money. However, you may end up paying a higher price in the long run.
What to Consider Before Canceling Commercial Insurance
You won’t get a refund. Insurance carriers won’t allow you to temporarily suspend policies and restart them later. If you cancel insurance today, you’ll have to take out a new policy when your business reopens. However, don’t count on getting a full refund if you cancel your coverage before your policy expires. Many carriers include a minimum earned premium clause in policies, meaning you may have to pay a percentage of the total premium if you cancel coverage.
You’ll be on the hook for damaged or stolen property. Businesses are always in danger of theft and vandalism. With closed and unattended storefronts, these risks multiply. If you cancel coverage and are then a victim of theft, you will be responsible for covering the damages and replacing the lost items.
You could pay more for new coverage. Insurers view businesses with gaps in coverage as bigger risks. Canceling your insurance coverage now means that you will likely pay higher premiums when you apply for new coverage when your business reopens.
Before you cancel your business insurance, first consider the consequences of doing so. When you’re ready to find reliable insurance for your business, the team at Premier Risk Insurance are here to help! We serve Long Island and neighboring cities in New York – Contact us to get started today.