The coronavirus outbreak has forcibly shut several businesses. Due to lockdown and restrictions, many businesses are suffering due to loss. If you are in a similar situation, it is understandable that you are looking for ways to cut down your expenses.
Canceling business insurance policies may seem to be a smart financial decision. However, it can cause more problems and cost you more in the future.
You Will Not Get a Full Refund
Insurance companies do not allow you to take a temporary break from your insurance. You cannot suspend it for the period when your business is shut. Moreover, if you decide to cancel a business insurance policy, you may still have to pay some of your premiums.
If you take a break in your insurance policy, your business will be considered risky by the insurance company. Due to this, you may have to pay higher premiums for similar insurance in the future.
Losing Business Permits
Most states and cities require business owners to have a valid permit for running their businesses. For instance, general liability and workers’ compensation insurance are important for retaining your business permits.
Damages and Thefts
With your store being shut, the risks of theft and vandalism are higher than usual. If you cancel your commercial property insurance, you will have to cover the expenses of damages or thefts.
Canceling insurance may not be the best financial move for your business. However, as your revenues are decreased, you can talk to your insurance agent to adjust your coverage and premiums instead of canceling your business insurance.
Having business insurance is the primary requirement for business owners to protect their businesses from unexpected expenses. If you have any questions about business insurance, contact the experts at Patterson & Associates in Richardson, Texas. We are ready to assist you with all your business insurance needs today.