What does a good insurance agency do if your insurance is cancelled?

Having your insurance policy retracted by an underwriter is something any individual or business owner is reluctant to even think about. However, the fact is that these things can and can happen to any person or institution.

When a policy is cancelled, it is likely to come suddenly and unexpectedly. The sudden lack of coverage, of course, has serious repercussions. Naturally, an immediate solution will not always result in the best solution.

Here is an actual episode of an insurance policy that was terminated without notice but ended with a happy resolution thanks to the expertise of an experienced agency.

As recounted by the insurance specialist in the agency’s commercial lines department:
Not long ago, the agency’s assistant broker received a phone call from a commercial office building.

“I need a good insurance plan for my new building,” he said.

All the factors about the property told the agent that this would be a simple transaction. With a new building made entirely of steel and concrete, there were no signs of difficulties.

After an insurance search, a tailor-made policy was purchased at a good price. After a preliminary inspection by the insurance company, the go-ahead was given and the comprehensive policy was set at a good rate: $12,000 a year for $11 million in coverage.

Out of the blue, the insurance company told the service agency that a sprinkler inspection of the building was needed. When the commercial property sprinkler inspector looked at the condition of the sprinkler system, he noticed that there were four decorative panels on the exterior walls that did not meet his company’s criteria for non-combustible materials.

With the office building downgraded to the insurance class of a frame structure, the insurance company abruptly rescinded the previous policy on the office building.

The owner of the district office building was told that the agency’s business lines specialist would purchase the provider network for him.

And it did, quite successfully, in fact.

The broker immediately got down to business. Negotiated with another insurance company that had initially given a slightly higher rate than stated and presented the owner of the office building with a tailored policy that included even more comprehensive coverage along with a cheaper premium than the canceled policy .

You can guess the epilogue of this story. There was one extremely satisfied client due to the agency’s tireless efforts to find a winning conclusion.