Insureon Blog

What Happens When You Don’t Renew Your Insurance Policy

7. August 2013 16:41

In early June, we wrote about the building collapse in Philadelphia that killed six people, injured several more, and caused substantial property damage to surrounding properties. Today, we learned that the contractor responsible for the demolition work may have had an expired insurance policy — meaning his company will likely face serious legal and financial consequences.

Here's a look at the specifics of the story, along with an overview of what happens when you let your business's insurance policy lapse.

Insurance Company: Contractor's Policy Was Expired

The Washington Post reports that Campbell Construction, the company responsible for demolishing the collapsed Philadelphia building, is facing a lawsuit from its insurance company. Apparently, the insurer claims that Campbell Construction's insurance policy expired May 1 because of the company's failure to pay its premium.

If the insurance company's allegation is true, Campbell Construction could…

The Risks of Letting Your Business Insurance Lapse

So what does all this matter if you don't own a construction or contracting business? Great question. While not every small-business owner faces the same grand-scale risks that come with demolishing buildings, they all have certain liability exposures that, if not managed properly, can lead to massive expenses.

Here are a few examples of what happens if you let your business insurance expire.

Ditch the Risk: Pay Your Premiums to Keep Yourself Covered

Not trying to add any major expenses to your balance sheet this year? Then be sure to make the investment of paying your business insurance premiums on time. These relatively small monthly payments help you avoid monster payouts (in the form of fees, fines, settlements, lawyers' costs, and judgments) down the road.

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Contractors | Insurance News

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