Can an insurance company sue for an unpaid premium on a cancelled policy with no claims against it?

Insurance policies are a contract between you or your company and the insurance company. You agree to pay a specified premium in exchange for protection against certain losses, whether they be auto or property insurance. The insurance company is required to notify you within a certain period of time before the expiration date if they intend to cancel or nonrenew your insurance policy. That does not void the current contract or policy and the coverage is intended to remain as written until the expiration date.Your failure to make the payment due on the policy is a breaking of the contract. The policy was still in force and if there were a loss it would have been paid. The fact that there was no loss does not mean you do not owe the premium.If you closed your business prior to the cancellation of the policy, you can ask the company to cancel the policy as of that date. If not, then the company does have to right to seek payment for the earned premium, including collection proceedings.