Reasons to cancel your current business insurance policy
The most common reasons to cancel a business insurance policy include:
- You saw a more affordable insurance deal that provides better protection and wider coverage for your small business.
- You are unhappy with your current plan, rate or service.
- You are moving out of the United States or to a location that is uncovered by your current insurance company.
If any of these reasons are yours, you'll want to write an insurance cancellation letter to find a better insurance company.
Consider making changes to your policy instead of canceling it
If you're unhappy with certain aspects of your policy, it may be worth requesting to change them rather than canceling your policy. These are some ways that you can save money on insurance while keeping it active in case of a claim:
Review your coverages
If you are willing and able to lower some limits now is a time to do so, although we don’t recommend it.
Increase your deductibles
This is a great and easy way to reduce premiums, while not compromising your coverage limits. Just be sure you can afford the deductible you choose if a claim should happen.
Reduce payrolls on Workers Compensation
Do this if you have reduced hours or completely cut off employees temporarily. It will help your premium payments at the moment and can be increased again once you are back open for business.
Review your premiums
Get better pricing first before you consider whether to cancel your business insurance.
How to write an insurance cancellation letter?
How to write an insurance cancellation letter?
Before you start writing your request to cancel your insurance plan, check if there are insurance cancellation provisions stated on your policy. Look for any specific instructions given by the company with regards to terminating your insurance policy, for example:
- Whether you have to pay any outstanding sums on your account before canceling the policy.*
- Who to address your insurance cancellation letter.
- How many notice days are allowed before the policy comes to an end.
- Where to post or email your letter and which department to speak to.
*TIP: Contact your insurer and find out if there are any outstanding balances to be paid.
If there are no specific instructions regarding policy termination, then you’re ready to write an insurance cancellation letter. All you need are basic policy details and your insurer’s contact information.
What To Include in Your Insurance Cancellation Letter
The following items should be included in your insurance cancellation letter:
Sample Insurance Cancellation Letter
*Date
*Company's Mailing Address or PO Box
Company's City, State, Zip Code
Re: Policy Number: #______________________Cancellation
I'm writing to seek termination of my insurance policy, which will take effect on [enter cancellation date]. I'd appreciate it if you could provide me formal confirmation of the cancellation within the next 30 days. Please return the unused amount of my policy premium and stop deducting monthly payments from my bank account.
Sincerely,
[Your Signature]
Your First Name Last name
Your Mailing Address or PO Box
Your City, State, Zip Code**
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