How To Switch Business Insurance Plans

For any business, safeguarding one's assets and operations is an important consideration. In most states, businesses are required to have business insurance, for protection in the event of an emergency or an accident. While you may already be working with your trusted insurance providers, there might be some situations that could call for the need to reconsider your business insurance plans. At some point, you might hear about a plan that works much better than your current one does, or one with more affordable premiums, payment plans, and great benefits. After shopping around for the best new business insurance plan and carefully studying the pros and cons, you decide that you will need to make the switch to the better plan soon. How do you make the change, then?

First of all, get in touch with your contact at the insurance company of your existing plan. Let him know that you have scouted around, and you plan to switch. Rather than simply make a phone call, write a letter formalizing your intention to do so. Don't cancel yet, as your provider might be able to make a counter-offer that will give you better terms than the other company.

If the insurer gives you a counter-offer, but you still intend to switch, again formalize the cancellation in writing. This prevents future problems, such as you being continuously charged for premiums even with verbal and written notices. When you terminate your plan, you should also ask if you need to submit anything to formalize the cancellation, or if there are any additional details that need to be ironed out.

Don't forget to have a new policy ready to replace your old business insurance plan. Even though this might sound premature, make sure you have already signed up with your new insurance provider before formally cancelling the original one. Otherwise, you might be left with a period of being uninsured, and you never know what disaster could strike.

Keep in mind that the best time for you to consider switching to a new business insurance plan is when your existing policy is about to lapse or is due for renewal. If that is the case, you can simply sign up for a new plan, and just let the current insurance company know that you are not renewing. This might be the ideal time to terminate, as it will prevent you from having to pay fees that some insurers implement for pre-termination.

Switching to a new business insurance plan doesn't have to be a daunting experience. If you really need help, you can simply ask your agent both from the current and the new provider about the steps you need to take as well as any requirements you might have to submit. And remember not to feel guilty about having to change your business insurance. This is a professional decision, and you only want the best for your company, after all. Therefore, you have every right to select the plan that provides the best benefits to your business.


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