Keeping Your Claims History Clean
Risk Management Guide for Janitorial, Maid, & Cleaning Services

Chapter 4: Building a Risk Management Plan for Your Cleaning Business
Part 5: Why Starting and Stopping Coverage Is a Bad Idea

As a small-business owner, you're probably no stranger to a tight budget. After all, when your business is just starting out, every penny contributes to a larger goal: advertising and marketing, maintaining equipment, hiring employees, and ensuring your clients are satisfied. It makes sense that you might look for places to trim the fat so you can pour more resources into growing your business.

And small business insurance is just that: an investment in the growth and continued success of your business. So while you may be tempted to terminate a policy when you're going through a lean season, the money you save is not worth the risk.

Insurance policies only protect your business while they are in force. For example, say you cancel your General Liability policy after your contract with a big client is up. If that client decides to sue your business for bodily injuries their customers sustained after you completed your work, you'd have to face the financial consequences of that suit on your own.

It's also worth noting that each state has different statutes of limitations where certain liabilities are concerned. Check out your state's statutes of limitations on's "Statutes of Limitations in All 50 States."

Next: Conclusion & References

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Keeping Your Claims History Clean: A Risk Management Guide
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