What Are The Consequences Of Cancelling My Insurance?

In past months, the business environment has changed drastically, with the coronavirus pandemic causing widespread stress, devastation and uncertainty.

For many individuals, the unfamiliar events unfolding across the globe have left them wondering whether or not various types of insurance are still worthwhile. Their business’ circumstances are likely far from the reality they once knew, so they may no longer need the same cover they once sought out – right?

Whether it’s Fire and Property insurance, Business Interruption insurance, Public Liability insurance or the like, experts have strongly suggested against discontinuing your cover in the midst of the COVID-19 outbreak.

While policy cancellation may be tempting, it can be incredibly harmful to your business’ ongoing viability, especially when many organisations are already under immense financial pressure.

Here, we’ll be breaking down why staying covered is so important, and discussing some of the key types of insurance individuals are questioning as of late.

Fire & Property Insurance

Many workplaces are currently unoccupied, with employees working remotely to aid in the containment of coronavirus in the community.

Your business may be closed, but this doesn’t mean that the risks your premises are subject to vanish. Unprecedented events can still occur, leaving you exposed to significant financial hardship, which may be all the more challenging to deal with in the current climate.

Even if your workplace isn’t as heavily trafficked as usual, fires, burst pipes, storms, burglaries, and the like can all still happen. Before cancelling your insurance policy, it’s important to consider how your business would cope and, ultimately, if you would have the means to survive this crisis, under such additional stress.

Public Liability Insurance

Similarly to the above, there is no saying that just because the environment within which you’re operating now has changed, you will no longer be at risk of being found liable for a certain occurrence.

If an unforeseen event happens, for instance, a pipe bursting and flooding a neighbour’s property or fire damaging the building you rent, this can end up being incredibly costly if you don’t have Public Liability insurance. 

In such cases, you’d need to defend your business, which, in of itself, can be a relatively expensive process. Beyond this, if your defence is unsuccessful and you’re found to be liable for the damages, many businesses would not have the means to recover from such financial strain.

It’s also worth taking into consideration that, in many cases, such as a fire that causes notable damage to property, the repair won’t happen overnight.  This means that, if the impacted business is uninsured for such occurrence, they’ll need to cover the cost of repair, while also losing a significant portion of their future profit during the reparation process.

With this in mind, remaining insured in these uncertain times is essential in preserving the long-term viability of your organisation and helping you stay on track for future success in the event of the unexpected.

For more information, or if this article has brought up any queries, please don’t hesitate to get in touch with us, 03 98091532.

DISCLAIMER

Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.  The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.