Businesses can be of different types. For example, some businesses operate only in fixed seasons. So, when you buy business insurance, you may be in a dilemma, whether to invest in a standard annual policy or buy insurance coverage only for that particular period when you earn an income through sales of your products or services.
In this blog, we will discuss several important questions that will help you make the right decision about the best business insurance coverage for your business.
Is Buying Seasonal Insurance a Good Option?
Suppose you own a business that operates only for a few weeks or months in a year or experiences bumper sales in a specific season. In that case, your business can be classified as a seasonal business. If you buy annual insurance coverage for your business, as is the norm, you will have to pay premiums for those months when your business is no longer in operation or has minimum income.
While seasonal insurance may be the solution to your unique business insurance needs, there are certain factors that you must consider.
- With seasonal insurance, you will be covered for the number of days you need protection, but there will be a gap in coverage until the next season when again, you need coverage. The months in between when your business is uninsured make your business highly vulnerable to risks.
- Each season, you may have to pay a higher insurance rate when you buy new insurance coverage. In the long run, while the annual policy may look more expensive, it may prove more affordable than the money you spend buying seasonal insurance coverage every new season.
What Does Seasonal Business Insurance Cover?
Seasonal business insurance offers coverage for the following:
- Losses due to less-than-expected revenue
It covers the losses your business experiences, allowing you to continue operating your business and settle all financial dues like your workers’ wages.
- Business limited to a specific season
It covers the unique risks associated with the season when your business operates.
- Seasonal events
It covers losses for a seasonal event expected to earn you a profit.
Can You Pause Your Business Insurance?
In most cases, your insurance provider may not allow you to pause your coverage for a fixed period. You may have to cancel your policy to discontinue and buy new insurance later. However, it has its drawbacks:
- You may not always get a refund for your canceled policy.
- Your insurance history shows several coverage lapses.
- Repeated cancellations make you a high-risk entity for your insurer.
- You may pay a higher insurance rate each time you buy new insurance.
Is Year-Round Insurance Coverage Best Suited for Your Business?
Year-round insurance coverage ensures that your business, including its property and other assets, is always protected. Also, you get a wider range to select from and more affordable coverages in the year-round business insurance policies.
Safeguard All Business Types with J. Archer Insurance!
Contact our team today if you are looking for the best commercial insurance in Texas. At J. Archer Insurance Group, we prioritize your unique business needs and get you the best and most cost-effective insurance coverage.