Canceling your cleaning business insurance early might seem like an easy way to cut costs, but it’s important to know the full picture before making that decision. At a minimum, you could lose the premiums you’ve already paid, leaving your business vulnerable to potentially expensive risks.
Here’s what happens when you cancel your policy early:
1. Your Business Is Unprotected
If you cancel your insurance early, your cleaning business is exposed to risks. Without insurance, you’re the one responsible for paying for expensive claims and financial losses from accidents, damages, or injuries that happen during your work.
You could have to pay for:
- Property damage
- A worker accidentally knocks over an expensive vase while dusting, leading to costly repairs.
- A cleaning crew spills a harsh chemical on a client’s hardwood floor, causing permanent discoloration.
- A vacuum cord causes a customer to trip, breaking an antique mirror in the process.
- A cleaning crew scratches a customer’s vehicle while moving equipment.
- Equipment loss and theft
- A fire breaks out and damages essential cleaning tools, leaving the business unable to operate.
- A thief breaks into a work trailer and steals industrial vacuums, steam cleaners, and other supplies worth over $2,000.
- A floor buffer malfunctions and overheats, making it unusable.
- Injuries and liability risks
- A freshly mopped floor causes a client to slip and fall, resulting in a medical claim.
- A cleaner steals valuable jewelry from the client, resulting in legal action.
These incidents happen more often than you might think. Without insurance, you’d have to cover these costs yourself — potentially putting your business at financial risk.
Why is continuous coverage important? Gaps in your coverage leave your business vulnerable. It’s crucial to have continuous protection to avoid financial setbacks.
2. Premiums are Non-Refundable (Why Lose Coverage You Paid For?)
Canceling your policy early means you won’t get back the premiums you’ve already paid. Insurance Canopy’s policies are generally non-refundable once coverage starts. Once your coverage is in place, the premiums are considered fully earned.
Exception: If a compliance officer finds that your business doesn’t meet policy standards within three (3) days, the policy will be canceled, and you’ll get a full refund. This is a rare situation.
3. Your Insurance Cost Could Increase in the Future
Canceling your insurance early could impact your future rates. Insurance providers assess risk based on your claims history and whether there’s a gap in your coverage. Without continuous insurance, your premiums may be higher when you purchase a new policy.
How to avoid this: When switching policies, make sure your new coverage starts right after your old one ends. This helps you avoid any coverage gaps and potentially higher costs.
3 Things to Do Before You Cancel Your Insurance Policy
Before canceling, review your insurance policy. The terms explain the cancellation process and what you need to do to cancel your policy, what terms or conditions apply, and how to get assistance if you need help:
- Review your policy’s cancellation clauses: This section explains the process and any fees associated with canceling your policy.
- Check the refund terms: Most policies, like ours, are non-refundable once coverage begins, but check for any exceptions.
- Get more information: We want to be sure you make the best decision for your business, even if that means canceling your policy. Please feel free to reach out to our team of licensed, non-commissioned insurance agents with any questions or concerns.
When Is It Right to Cancel Your Insurance?
There are situations where canceling your insurance early might make sense. Here are some common scenarios:
- You are selling your business
- You are switching providers
- You are closing your business
Before making the decision to cancel your policy, make sure that you don’t have any continued risk, and that you time cancelation to avoid gaps in coverage. If you need help or advice, feel free to reach out to us so you can feel confident you’re making the right choice.
How to Cancel Your Cleaning Business Insurance Policy
If you need to cancel your cleaning business insurance policy, think twice! If canceling is the right move:
- Review your policy: Look for any cancellation clauses, fees, and other conditions that may apply. This will help you understand any requirements associated with the cancellation.
- Start the process: You can start the process to cancel your Insurance Canopy policy from your dashboard — if you need any help, you can also get in touch with Insurance Canopy’s support team.
- Submit your cancellation request and provide the following:
- Your policy number and business name
- Reason for cancellation (if applicable)
- Any relevant details that could help us process your request efficiently
- Verify your cancellation terms: If needed, ask our support team for confirmation on the specific cancellation terms that apply to your situation. Including whether you qualify for a refund in rare cases (e.g. if your business doesn’t meet policy standards).
Receive confirmation: Once we process your cancellation request, a written confirmation will be sent out. Keep this confirmation for your records as proof your insurance has been canceled.
FAQs About Canceling Your Insurance Policy
Can I switch insurance providers without canceling my current policy first?
Yes! You can switch providers without canceling your existing policy first. Just ensure your new policy starts before your current one ends to avoid any gaps in coverage.
Can I get a refund if I cancel my insurance early?
Generally, no. Once coverage starts, Insurance Canopy’s policies are non-refundable. However, in rare cases where your business doesn’t meet our policy standards within three days of purchase, we’ll cancel your policy and provide a full refund.
What happens if I don't cancel my insurance and stop paying?
If you stop paying your premiums without formally canceling your policy, it can be canceled due to non-payment. This leaves your business unprotected, so it’s important to cancel properly if you no longer need the coverage.
What happens if I forget to cancel my insurance?
If you forget to cancel, your policy remains active, and you’ll continue to be charged. Be sure to cancel on time to avoid unnecessary charges.
Can I change my insurance policy instead of canceling it?
Yes! If you need to adjust your coverage, you can usually modify your policy without canceling it. Just contact our support team to discuss your options.
Need Help Navigating Your Insurance? Let’s Make It Easy!
We know insurance can be confusing, but don’t worry. We’re here to help! If you’re unsure about canceling your policy, switching providers, or making any changes to your coverage, our support team is here to guide you through the process. Let us help you find the best solution for your business’s needs — contact us today!
