How to Switch Business Insurance Plans Without a Hassle

You have heard horror stories about your existing business insurance company. Here comes a friend who switched to this new company with a great insurance policy with more affordable premiums and payment plans. As you retire in your bed that night after hearing your friend's story, you wanted to switch business insurance the very next day. Wait a minute there. Read on first before you do.

Should you really switch?

There are lots of insurance companies out there and there are some that come with a great deal. Sometimes, asking around for a great business insurance plan is all it takes to find the right one for you.

If after a thorough research and careful study you found that your current insurance policy deserves a goodbye, then don't hesitate to let it go.

How to cancel your old policy

If you were already decided to switch business insurance plan, don't forget to cancel your old policy. Inform your agent or broker that you wouldn't want to continue your premium plans and give him or her the exact date of termination. The date of termination would determine how much you would still need to get out of a terminated policy. Don't ever leave your current insurance policy without formally informing a representative from the insurance company.

Furthermore, cancelling your old policy in a formal way will remove any problems along the way, such as an agent or a broker denying the fact that he was informed of insurance policy cancellation and continues to bill you even after you have "verbally" informed them (such as a cancellation over the phone). Create a letter indicating such termination. As businessmen often say, "Keep everything in black and white."

Get a new policy before anything else

But before you do cancel your current business insurance plan, get your new policy first. This is to prevent from having a non-insured period while your business is running and is fully operational. When something unfortunate happens and your business, unluckily, doesn't have insurance policy within that period, you'll be faced with the major disaster of your business career. In insurance, especially with business insurance, it is better to have double or overlapping policies at the same time than to have none at all.

When's the right time to switch policies

You may switch business policy and inform your current business insurance company of the cancellation when it's renewal time. This is to save you from all the expenses that you might incur if you terminate the policy abruptly. Some insurance companies charge policy holders a certain amount (most of the time a huge amount) for abrupt termination.

In summary, it is not really that hard to switch business insurance plans, especially if you have the money. However, if you are practical and you want to save money, the suggestions above would help you switch business insurance plan without a hitch. As they say, to succeed in business, careful planning is essential. And planning your change of insurance plan is one of the many things that you can do to keep your business in shape.