Qualifying Event Definition

The "Legal-Ease" Glossary
Qualifying Event

Any significant change to your business that affects your insurance needs.

For example, if your business starts offering additional services, you will need to contact your insurance provider to alter your policy so it still covers you. Most insurance policies have a qualifying event clause so you don't have to wait until policy renewal to adjust coverage when your business makes significant changes.

Typically, there is a two-month window in which you need to report these changes in order to be eligible to alter your coverage. (For more on the types of events that affect your coverage needs, read the blog post "Time to Reassess Your Business Insurance.")

RETURN TO GLOSSARY