From past business experiences I have discovered that quite often late payments for bills or invoices are not only accepted late, but they are also usually not penalized. Many companies see late payments so frequently that they expect people to be late. Whether the general acceptance of this model should be embraced or not is another debate for another article.

I am posting this article to serve as a warning and also provide awareness to the fact that insurance companies do not support this model. Insurance companies will and often do cancel customer’s policies for late payment. With the current economic state of our country many business owners are just looking to stay afloat and stretch their dollar farther. This mentality has recently caused many business owners to be late in their insurance payments.

Every month our agency receives a stack of cancellation notices from insurance companies because of late payments by clients. Sometimes the company will reinstate the insured after receiving full payment, but sometimes the insurer will not reinstate the policy. This is a dangerous game from business owners to play. The more frequent this game becomes the less likely the insurer will be comfortable reinstating the policy. It may also result in increased premiums for upcoming years if the insurer is still willing to accept the risk of insuring the company.

The Agent Articles section of BearWiseLandscapers.com allows our insurance agents to provide practical information for landscapers. These agents can also obtain quotes and establish a custom insurance program for your landscaping business through our access to a variety of insurance carriers. This agent article is filed under (1) Insurance, and you can follow comments to it through the RSS 2.0 feed. Feel free to leave your own response below: