If my business isn’t able to operate because of COVID-19, should I just cancel my insurance policy or can I stop paying the premiums?
Even in a time when a business is unable to operate as usual due to the impacts of COVID-19, it’s important that businesses remain covered for standard risks, many of which may be more likely when the property is unoccupied, such as vandalism of the property, theft of stock or equipment, or even loss of information or damage to IT systems and networks.
If you stop paying your insurance premiums your policy is null and void and you won’t be covered for any loss or damage to your premises or business assets. It would be a terrible outcome for a business without adequate insurance cover to experience significant damage whilst temporarily closed, which would delay their ability to get back up and running once permitted to do so.
If you have concerns about your financial ability to continue paying insurance premiums whilst temporarily closed, it is vital that you speak to your insurance broker or go direct to your insurer to discuss the options available. Insurers know this is an incredibly difficult time for families and businesses and you may be able to negotiate reduced or deferred payments in the short term.