Is it possible to forfeit your commercial insurance plan?

You have taken the responsible step of buying an insurance policy for your business in Denver, CO. Do you know everything that is needed to keep your plan in good standing? An agent at AFI Insurance can help you understand your rights and responsibilities as a commercial insurance policyholder. Read on to learn more about commercial insurance.

What is business insurance, really?

Commercial insurance is essentially a contract between the consumer and the provider. You agree to pay a monthly premium and, in exchange for your business, the provider agrees to pay for damages related to your company.

An indemnity firm does not guarantee coverage of everything that happens to your business, which means that you may find yourself out of luck if your brick and mortar floods while you lack flood assurance. You may also find yourself at risk of losing coverage if you intentionally damage your business property for the sake of filing an indemnity claim. Arson by way of the company’s owner is the most common example of an individual harming the business in hopes of getting a big payout.

Others ways to forfeit coverage

Intentional damage and having limited coverage are not the only two ways to not get the most out of your commercial insurance plan. You lose all manner of protection when you fail to pay the premium in a timely manner.

The possibility of losing coverage and having to pay for everything out of your personal funds is why you should only purchase the commercial insurance policy that you know you can afford. An AFI Insurance agent can help you understand the details of commercial insurance so that you find the policy that works best for your business in Denver, CO. Call them today to get started with a quote!