As the leader of a non-profit organization or business, you’ve got a lot of responsibility on your plate. From board meetings to fundraising efforts, it can be easy to forget other aspects of operations. However, when it comes to insurance, you never want to forget your policy end dates; otherwise, you could face a lapse in coverage that can quickly turn costly.
A lapse in coverage might not seem too bad at first, but you should consider your risks before you let your insurance policies fall to the wayside. For example, “6 Gaps In Business Insurance That Can Destroy Cash Flow” shares the scenario of an employee using a company vehicle and being involved in an accident in which a surgeon is hit and as a result, his hand is injured and he can no longer use it to perform operations. Whether the policy was a commercial auto or umbrella policy, if it’s ended or been terminated, your business or organization could face paying a number of legal fees out of pocket in a situation that could have otherwise been covered through insurance.
In addition to costs that could result from an incident that occurred during the lapse of coverage, your insurer may require you to pay a fee to reinstate your policy (The Truth about Insurance). Additionally, a lapse in coverage of more than 30 days can forfeit any continuous coverage discounts your insurer offers. Furthermore, as Small Business Trends shares, if you had a policy with any long-tail coverages, you will lose that coverage, too.
Lapses in insurance coverage can also make it harder for you to obtain insurance for your business or organization in the future. And for those who have experienced lapses in coverage in the past and are still able to obtain insurance, “premiums will likely be higher,” (Small Business Trends).
The best thing you can do for your organization or business is to keep track of policy start and end dates so you’re never without adequate coverage for all of your needs. If you have an insurance end date in the near future or would simply like to review your policies and make necessary updates, contact Lamb Financial Group today at 1-866-481-5262.