Most insurance policyholders understand the importance of insurance protection at the time of a loss. Whether the loss is an auto accident, a structure fire, a theft, or even a lawsuit, people know that an in-force insurance policy may provide coverage if properly written and maintained.
But it’s also essential to understand how an insurance cancellation can create negative consequences for yourself or your business.
I want to speak to you about maintaining your coverage and protection. In my video, I speak about three reasons to never allow your insurance policy to cancel. Since then, I have added two additional reasons because of the hardening insurance marketplace. I hope this BLOG helps!
POLICY EXCLUSIONS THAT CREATE GAPS IN COVERAGE
Policy rewrites contain prior work exclusions after a lapse, especially in industries such as construction. A prior work exclusion will create a coverage gap and leave a business unprotected for work performed before the policy effective date.
THE LOSS OF YOUR RETROACTIVE DATE
If you have a claims-made policy, you may lose your retroactive date if your policy lapses. We explain retroactive dates in videos on our YouTube channel. Consider claims-made retroactive dates if you hold a professional or management liability policy.
YOU MAY LOSE DISCOUNTS AND PAY HIGHER PREMIUMS
Insurance companies provide discounts to customers that remain consistent. It costs an insurance company lots of money to send customers cancelation notices, payment reminders, and policy termination endorsements. It’s also costly to rewrite a policy. If you cancel, your discounts will erode.
Your policy may cancel, and you may not know it. We keep customers informed, but that doesn’t always guarantee message delivery. We recommend automated payments to ensure continuous coverage and protection for accidents and catastrophes.
You may find yourself having difficulty securing a new policy! As the insurance market hardens, carriers are pulling back on writing business by tightening their underwriting requirements. Often, a coverage lapse will cause an insurance underwriter to decline your application, leaving you without protection.
FUSCO ORSINI & ASSOCIATES KEEPS CLIENTS INFORMED
You came to the right place if you don’t have an insurance representative who assists with policy cancellations.
At FOA, we built systems to help 93% of our policyholders maintain their coverage during the policy term.
Do not hesitate to contact our agency at 858-384-1506 if you require assistance with your insurance needs. You may also complete the form below.
We’ll talk to you soon!