Everyone loves to save money – it’s a part of our DNA. But one thing you should hold off on doing when you finally sell your business property, is cancelling the Property Liability Insurance right away. In a recent lawsuit, claims against a former property owner were made for injuries after the property was sold and the insurance cancelled. You DON’T want this happening to you. Your businesses future is at stake.
The claim made stated that the condition which caused the accident existed before the sale of the property. The new property owner wasn’t notified prior to the purchase nor were they given the proper amount of time to remedy the issue. Occurrence policies are pretty strait forward, it was the previous property owner’s responsibility to repair the issue. Since the coverage was terminated as soon as it was the property was sold, they are now responsible to pay.
Now the question is how long do you hold onto your coverage after you sell your property. The answer is entirely up to you, it could be days, weeks, or years, but one thing you should definitely not do is cancel it right away.