One of the first steps in getting your business up and running is making sure it is insured. Once it is fully insured, you can rest easy knowing that your hard work is protected in the event of any mistakes, damages, or other liability issues. But it is important to remember that insurance is an ongoing commitment. If you don’t keep on top of it you could end up with a letter or call from your insurance company saying that your business policy is going to be canceled. In order to keep that from happening, be sure to avoid the following.
Filing Too Many Claims
Insurance companies are businesses, and, as such, they need to worry about their bottom lines. When they protect you, they take a risk in protecting you. If you process too many claims, your insurance company will come to the conclusion that you are not taking the proper steps to prevent claims from occurring. If you are not minimizing your risks, they may see you as negligent, which could violate your insurance conditions.
Not Keeping up with Payments
Again, insurance companies are businesses and, as with all businesses, if you don’t pay for something, then that business has the right to no longer work with you. If you fail to make a payment or make multiple late payments, that will send a red flag to the insurance company that you are not reliable and cannot keep up with your policy.
Inaccurate Application or Renewal Data
If you accidentally (or purposefully) provide inaccurate information to your insurance company during the application process, this gives them the right to cancel your policy. If you unintentionally provide inaccurate information, your insurer may continue to work with you if you correct the information. But in many cases they will cancel your policy and not work with you to fix the issue. If they find out that you intentionally gave false information, not only will they cancel the business policy retroactive to the date coverage first became active, but they will also notify the proper authorities. Knowingly providing false information to your insurance company is considered fraud, which is a felony.
Preventing Cancellation
In order to avoid having your business insurance policy cancelled, you need to be upfront, pay your bills on time, and try your best to keep claims to a minimum. Accidents happen, which is understandable; but if multiple accidents keep happening, then your insurance company will believe that you are not trying to prevent these claims from happening.
In addition, if you have moved to a new area, or if anything about your business has changed, be sure to notify your insurance company immediately. If you realize that any information you provided was not correct, then notify your insurance company immediately.
Having a good insurance agent is key to helping you prevent any cancellations; they can also present your case if your insurer does decide to cancel your policy. EZ’s agents will do just that for you. Our agents are your biggest advocate and will always have your back. If you do end up losing your policy, contact an EZ agent and we will find you another commercial insurance plan that offers as much or more coverage than your current policy, and that saves you more money. To get started, enter your zip code in the bar above, or to speak directly to an agent, call 888-615-4893.