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4 Things to Consider Before Canceling Your Business Insurance

4 Things to Consider Before Canceling Your Business Insurance

There may come a time when you ask yourself if you’re getting the most out of your business insurance. You may even start shopping around, comparing policies to determine if there’s a better one out there. Before you start writing up your cancelation letter, though, there are a few things to consider:

Do you have another policy lined up?

The biggest risk with canceling your current insurance policy is being uninsured until your new insurance policy kicks in. Some policies offer a grace period, but this is typically only when you’re late in making your payments, not if you’re completely canceling your policy. If you’re going to cancel your current insurance policy, always make sure that you have another policy lined up.

Is it a claims-made policy?

A claims-made policy covers claims that are filed during a policy period. This can be a problem if you go without coverage after canceling your policy. While an occurrent policy will cover you even if you’ve filed after a policy period (so long as the incident in question took place during the policy period), a claims-made policy will not. This could leave you vulnerable if you do not have another policy lined up after canceling your current one.

Cheaper isn’t always better

We always want to get the most bang for your buck. However, many business owners simply look at the sticker price and not the rest of the policy. A particular policy may be cheap, but it will also cover less. So, in some cases, it’s best to pay the higher price if it means better protection for your business.

Canceling vs. adjusting

If you’re not satisfied with your current insurance, see if you can adjust your policy rather than canceling it completely. You never know; you could get a better deal without the hassle of completely canceling your current policy.

At Firearms Insurance Agent, we can help you cancel, adjust, or find a completely new policy for your business. Contact us today to learn more.