How to Switch Business Insurance Providers

A new year is on the horizon and with it comes the opportunity to make some changes. If your business insurance isn’t making the grade, whether your renewal date is fast approaching or far off in the future —we have some advice: Don’t stay stuck in a bad relationship. So, we’re going to teach you how to switch business insurance providers.

Many people don’t realize that there is a way out of a less-than-stellar business insurance policy. And the way out is actually pretty simple. Here it is: You can cancel your current plan at any time and make the switch to another broker, company, or policy. 

The right insurance coverage can greatly impact the overall health of your business. If it’s come to the point where you’re looking into switching business insurance providers, we’re here to tell you, don’t compromise. Whether you’ve had a bad claim experience with your current provider, costs are too high on your current plan, or your business needs have changed, make sure that your policy is doing the absolute most it can for your bottom line and professional goals. 

How to Switch Business Insurance Providers: 3 Things to Keep In Mind

Okay, so your current policy doesn’t cut it. But, now that you’ve already been through the process at least once, you’ll have a better idea of what you want out of your policy and provider. Before you start shopping, here are some points to consider:

Switching Before Your Renewal Date

In a perfect world, you’d wait to switch your provider or policy until the renewal date. The life of most business insurance plans lasts a year — and sometimes that is just too long to wait. There can be fees associated with canceling or switching your plan early, so weigh the risks against the rewards wisely. If you can get a new plan at a lower cost with better coverage, the one-time fees could be very much worth it.

You’ll also want to be aware of the terms “prorate” and “short-rate” when canceling a business insurance plan early. Prorating is when you’re entitled to a refund if you’ve overpaid at the time of cancellation. You will be refunded what’s left of the total premium amount of the coverage. A provider may also short-rate your refund. That means they would take a portion of what you overpaid as a cancellation fee. Just be on the lookout for this type of language when you cancel, so you can account for all costs incurred and recouped throughout the process.

Avoid a Lapse in Coverage

It’s important to have a new provider lined up before you cancel your current plan to avoid a lapse in coverage. Even a short lapse could end up costing your business a great deal. So make sure you sign a new policy before you cancel your existing plan.
Take the time to look into any costs or fees you will have to pay your existing provider. Your new broker may be able to help lessen the blow by reducing costs associated with your new plan where they can.

Ensure You Properly Cancel Your Current Plan

If you plan to switch business insurance providers at the time of a policy renewal, you will still have to confirm cancellation with your current provider. Many policies automatically renew if you do not go through the proper cancellation methods. To be safe, alert your current provider that you do in fact want to cancel your plan, even if you don’t think you’re set to auto renew. In this case, it is definitely better to be on the safe side and not end up paying for two insurance policies longer than you have to.

Perhaps your previous agent retired or changed firms or your current broker no longer meets the needs of your business — you’re entitled to find a better fit. Business insurance should feel frictionless. From getting certificates of insurance to filing a claim, you’ll want the primary functions to be available and easy to use, and it helps to have a broker who understands you and your business needs. When researching how to switch business insurance providers, consider reading reviews, getting free online quotes, and comparing coverage types and offerings across providers. Embroker makes it easy to get a quote online within minutes, and you can call or chat with an insurance professional to help you along the way.

Business insurance providers are adding new types of coverage every day, so perhaps you don’t want to wait until your renewal date to reap the benefits of switching your plan. Or maybe you want to switch your coverage because your business needs have changed. For example, let’s say that you are now handling deliveries yourself instead of going through a third party, or you’re offering a new service to your customers that involves a higher level of risk. Whatever the reason, you have the right — not to mention the responsibility — to update or change your coverage when you want.

And if you do in fact want to switch your coverage just remember to ask yourself, “What do I need to cover and how much protection do I need?” Don’t just switch your coverage to cut costs, especially if it also means cutting coverage you need. Bundling insurance could be a better way to go, as many plans that offer more than one type of coverage cost less when bundled together. Embroker allows for you to customize your plans. You can work with a broker to come up with a plan designed just for the needs of your business, and learn how to switch business insurance providers.

You could also be looking into switching your insurance policy for a variety of reasons, especially if your business or industry has changed altogether. In this case, you will need a new policy and shouldn’t wait until your current plan’s renewal date. And if you’re already in the process of switching your policy, you may want to consider switching your provider too. You can get a free quote with Embroker and work with an agent to come up with a plan that fits your new business needs as they evolve.

Knowing how to switch business insurance providers will empower you to make better decisions that support your goals. Don’t feel stuck with an insurance broker, coverage, or policy that you don’t like. There are so many options to choose from you shouldn’t settle.

Now that you know how to switch business insurance providers, are you ready? Get started by uploading your insurance policy here, and we’ll start the process for you.

Switching insurance providers is easy. Let us show you.

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