Are you considering canceling your insurance while your restaurant is dormant? Then we highly recommend you not to go through with it. Want to know why? Continue reading this blog to find out!
If you own a restaurant, you must know how important it is to have Restaurant Insurance. The number of times it would have saved you from exhausting your savings and going into a loss must be unmeasurable. From daily wastage to repairs and reimbursements to even medical expenses from injuries and claims, Restaurant Insurance covers various aspects of your everyday business. So if you have an actively running business, then Restaurant Insurance cancellation must not be running through your mind.
However, various circumstances may lead to your business being temporarily closed. This can include major renovations, repairs, extended absence, or any other external reason. And during such times, Restaurant Insurance cancellation may seem like a viable option. But we highly advise against going through with it.
Here are four valid reasons why you shouldn’t consider Restaurant Insurance cancellation even if your business is temporarily shut down:
Loss of permits and licenses
Many permits and licenses that you need to run your establishment require you to have Restaurant Insurance coverage, more specifically, General Liability Insurance. Apart from that, most states in the USA also require Workers Compensation Insurance for you to run a business. So if you decide on canceling your insurance, then you might end up losing the permits and licenses. And when your restaurant becomes active again, you won’t have the legal right to conduct business or sell food in your establishment.
Once you go through the fine print of your loan agreement, you will learn that it may require you to have insurance. In this case, your Restaurant Insurance policy. So if you plan on canceling your insurance, then you will definitely break the terms set by the financial institution. So even if you pay your dues on time and cover every other aspect of the agreement, you will still find yourself on the defaulters’ list.
Higher Insurance Premiums
If you plan on temporarily canceling your insurance policy and buying a new one once your business restarts, we highly advise against it. Canceling your policy will mean that you’re discontinuing the current benefits you enjoy with cheaper premium rates from your insurance provider. And when you do eventually get the policy back, the premiums will cost a lot more than they previously did.
Risk of theft and vandalism
When your restaurant is not protected with insurance, you are always vulnerable to acts of theft and vandalism, even if your business is temporarily closed. And since you don’t have insurance, there is no way for you to get reimbursed for the damages you face. So canceling the insurance exposes you to the risk of financial losses.
The unforeseeable future
There are many more risks involved in canceling your insurance that may be unique to your business. You can never anticipate the obstacles you might face along the way and if you will be able to financially deal with them or not. So it’s always advisable to avoid canceling your insurance, even if your business is temporarily shut down.
If you want more tips on developing a Risk Management Plan when you face obstacles in your business, then click here. Commercial Restaurant Insurance may include a number of policies like General Liability Insurance, Umbrella Insurance policy, Machinery Breakdown Coverage, Commercial Auto Insurance, Risk Management Insurance, and many more. If you want to know how you can Save On Your Restaurant Insurance Cost then we recommend you to click here. And for any other information related to insurance, you can browse through the rest of the website. Have a financially safe and happy business!