Overview Of The Business Insurance Policy Cancellation Procedure

Business Insurance Policy Cancellation Procedure

Do you have several business insurance policies for your company? If you do, you may one day decide to cancel some of them. You are going to do this because you will a found several other businesses that can provide you with better deals. They can save you money on your annual premiums, deductibles, and may also provide you with quite a bit of coverage above and beyond what you have now. Here is the standard way by which business insurance policies are canceled as you attempt to get better deals from other insurance businesses.

The Top Three Reasons That People Cancel Their Policies

If you decide to cancel your insurance policy, you will likely do so for three reasons. First of all, it's going to be about the money. Second, the amount of coverage that you have this simply not going to cover everything for your business because you have expanded. Finally, your deductible premium is much too high. Assuming that you have the time to look for these different policies, you should get several different estimates back. If you use a business insurance broker, they can help you get a multitude of different estimates. You could call your existing insurance provider to see if they will lump all of your policies into one umbrella coverage and that can sometimes help you save money. However, if it's still too high, you will soon after cancel these high priced insurance policies to get something that is better.

What Is The Usual Process For Canceling Them?

In most cases, you will contact your existing insurance provider and tell them that you want to cancel. Once you do that, they will ask you when would be the best time to do so. You will often hear them say that the cancellation will go through, but you will be covered up until the point where your next billing cycle will happen. Most of them will not cancel the policy the day that you call. While you are figuring this out, you can also talk to your new insurance providers. Tell them the date when your other policies will lapse. By doing so, you will ensure that you will have coverage up until the point your old policies come to their conclusion, allowing you to automatically be covered by the new policies.

Are There Any Fees For Canceling Your Policies?

There are typically no fees associated with canceling your insurance. They are simply going to do this when you request. They will give you the date when the policy will come to an end, and that will be the last time that you are billed from this current insurance provider.

Is There Any Paperwork Involved?

You may have to sign some paperwork that Will show that you have officially canceled the policy. If not, it will automatically be done. Each insurance provider is going to be a little different. They can tell you right away how much it's going to cost if there is any charge.

How To Coordinate Your Cancellation With Your New Policies

You can cancel your policies, and also have your new ones designed to turn on by a certain date, usually on the same day. You will have to have chosen the new policies, and have those policies ready to activate, before you cancel anything. The last thing that you want to have occur is a lapse in your coverage. For example, if you choose the wrong day to have your existing coverage turned off, perhaps a day or two before your new policies are enforced, you would not be covered if anything were to occur. This is something that you need to be very careful of so match up your dates appropriately so that your coverage does not lapse at all.

You can cancel your policies, and also have your new ones designed to turn on by a certain date, usually on the same day. You will have to have chosen the new policies, and have those policies ready to activate, before you cancel anything. The last thing that you want to have occur is a lapse in your coverage. For example, if you choose the wrong day to have your existing coverage turned off, perhaps a day or two before your new policies are enforced, you would not be covered if anything were to occur. This is something that you need to be very careful of so match up your dates appropriately so that your coverage does not lapse at all.

Final Thoughts And Considerations

There are two other things that you need to be concerned about before you cancel the policy. Be sure to tell your existing provider that you are not happy because of the cost. If there is nothing that they can do to lower your premiums, then you will know that you are making the right decision. Finally, be very certain that your new coverage will save you money on your monthly premiums, provide you with the same amount or more coverage, and that you will have lower deductibles as a result of switching over.

The procedure for business insurance policy cancellations is not that hard to do. It's simply a matter of making the request, and coordinating the dates by which your new policies will be activated. It's a very simple process, one that the insurance agents will help you achieve. Even though your existing policy provider will not be happy with you leaving, they will ensure that you will no longer be billed and that your coverage will lapse by the end of the billing cycle in most cases.

Next up is know how to file the Small Business Insurance Claims.