If your insurance provider cancels your business insurance policy, it can be frustrating, and the ramifications of losing your coverage can be detrimental to your company’s welfare.
An insurance company can cancel your policy for various reasons, including:
- Non-payment of premium: If you fail to pay the premium on time as agreed, annually or monthly.
- Misrepresentation or fraud: If you provide false or misleading information when applying for insurance, that’s grounds for cancellation.
- High-risk activities: If your business engages in high-risk activities not covered by the policy or that increase the likelihood of a claim, your insurance provider may take exception to it and cancel the policy.
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- Changes in your risk profile: Insurance policies are priced by insurance providers based on your small business’s risk. Thus, if the risk profile of your business changes because you add new services or products or relocate to a high-risk area without notifying your broker or insurer, that may lead to the insurer cancelling or modifying the policy.
- Loss history: If a business has a history of significant insurance claims, the policy can be cancelled, or your premium can be increased.
- Regulatory violations: If your business violates regulatory requirements or laws related to your industry or operations.
It’s important to note that insurance companies are required by law to provide you with proper notice if they intend to cancel your policy. Typically, you may get a 30-day grace period with that notice to settle up and avoid cancellation. However, if a policy is cancelled, the insurer should provide a detailed explanation of the reasons for the cancellation and suggest options to get coverage again.
What Happens If an Insurer Cancels Your Business Insurance Policy?
If your business insurance policy was previously cancelled for non-payment, obtaining a new policy from the same insurer can be challenging. However, it is still possible to get business insurance from another insurance provider.
When you apply for business insurance, insurers will review your insurance history, including cancellations or non-payments. If you have a history of non-payment or cancellations, it may impact your ability to obtain insurance or increase the cost of your premium.
To increase your chances of obtaining business insurance after a previous cancellation for non-payment, you may need to take the following steps:
- Pay any outstanding debts: If you owe any money to your previous insurer, you will need to pay it off before applying for a new policy.
- Provide an explanation: If your previous policy was cancelled due to financial difficulties or other circumstances beyond your control, you should explain it to your Zensurance broker.
- Shop around: You may need to shop around and obtain quotes from several insurers to find one willing to insure your business. We can help you do that quickly and easily.
- Consider payment options: Many insurers offer payment plans or other payment options to help you manage the cost of premiums. For example, you can pay your premium annually and not worry about it until renewal time, or you can pay it in monthly installments. Either option has pros and cons.
Overall, it is possible to obtain business insurance even if you have been cancelled previously for non-payment. However, shopping around may require extra effort to find an insurer willing to work with you, but don’t worry, that’s where we come in: we make finding low-cost business insurance easy.
How to Avoid Missing an Insurance Premium Payment
Let’s assume you’re having trouble paying your premium on time, or you know you don’t have the funds to pay on time. Whatever the reason, here are a few suggestions to help prevent missing your monthly payments:
- Choose an automated payment date that aligns with your finances to make it easier to pay on time.
- If you can, budget for when withdrawals occur and avoid NSF (non-sufficient funds) fees.
- Set reminders in your calendar to be notified when a payment is due.
- If you think you may miss a payment, contact your broker immediately and let them advise you on managing it so your policy stays on track.
How to Get Insured After an Insurer Cancels Your Policy
Let Zensurance help you find the business insurance policy you need, even if your last policy was cancelled. Take a few minutes to complete our online application for a free quote.
If you want to speak to a Zensurance insurance expert, we’re available by live chat or by calling our toll-free number. We’d be happy to assist you.
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