Insureon Blog

How to write an insurance cancellation letter

9. May 2019 01:18

Man writing a letter

By Harry J. Lew, Insureon Contributor

Nothing in life is forever. That includes your small business insurance, which you may need to cancel at some point. If that becomes necessary, be sure to follow your insurer’s procedures and file a written insurance cancellation letter.

When should you cancel a business insurance policy?

Canceling a small business insurance policy is never a decision to make lightly, especially in today’s risky business environment. It’s important to make sure your business and personal finances are not exposed to risk before you cancel an existing policy. Do research beforehand and compare quotes from multiple carriers if you plan to replace your policy with something better, cheaper, or more appropriate.

Here are some reasons to consider canceling your insurance policy:

Consider the risks of canceling insurance

Once you decide to cancel your policy, consider four implications for your business:

Still wish to cancel? Send a written insurance cancellation letter 

If you have a legitimate reason to cancel and it won’t subject your business to extra risk, then it’s time to file a written cancellation notice. But before you do, check your policy to see if your insurer has any cancellation requirements. For example, your insurer may need your letter to go to a specific department, or it may require a certain number of days’ notice before it can deactivate your coverage.

Once you’re clear on what’s required, it’s time to draft your insurance cancellation notice. Your letter should include:

Next, draft the body of the letter. The body should include:

Compare new policies for your business with Insureon

It’s a good idea to shop the market periodically to see if you can save money on your business insurance, but don’t do it too often. If insurers see that you switch companies every year, they may decide not to cover you, or they may increase the premium they charge.

Insureon has helped thousands of small business owners compare multiple quotes from different U.S. carriers at one online destination. Start a free online application today to save time shopping for insurance.

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Risk Management

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