Commercial insurance protects against unexpected losses like workplace accidents, business interruption, property damage, and legal inquiries. As a business owner, your day is often filled with numerous meetings. Unfortunately, being pulled in every direction could result in a lapse in your commercial insurance coverage. The team at Multisurance of New Orleans, LA, can assist in minimizing the damage and restoring your coverage without delay.
Understanding Commercial Insurance Lapse
A commercial insurance lapse occurs when a policy has been placed on temporary hold due to a missed premium payment or failure to renew a commercial insurance policy before its expiration date. If no action is taken, your business may face countless liability claims without a safety net. The consequences could result in the immediate closure of the business.
Consequences of Letting Your Commercial Insurance Lapse
Louisiana state law requires all businesses to have an active commercial insurance policy. The coverage should include general liability, worker’s compensation, and property insurance. Failure to meet these requirements could result in fines, operational penalties, and possible legal action. Also, your business may be re-classified as a high-risk policyholder. This could make reinstating your commercial insurance policy nearly impossible, as insurance providers might find your business less desirable as a client.
How to Avoid a Commercial Insurance Lapse
To prevent a lapse in coverage from happening again, you will need to implement a plan that keeps your commercial insurance policy active. If possible, set up an automated payment plan. Also, create a communication system that alerts you of your upcoming due dates for policy renewals, monthly premium payments, and any changes in the policy’s status.
If you need help preventing a commercial insurance lapse from occurring again, contact Multisurance in New Orleans, LA. Our team can assist you in developing a plan to ensure you never miss a deadline. Call us to schedule an appointment today.
