Withdrawing of your insurance policy by an underwriter is something that any person or business owner is reluctant to think about. The fact is that these things can happen and they can happen to any or any institution.
When a policy is canceled, it is likely that it comes on suddenly and unexpectedly. A sudden lack of course coverage comes with serious consequences. Naturally, the immediate solution will not always be the best solution.
Here is the actual episode of an insurance policy, which was canceled without prior warning, but ended with the offer thanks to the expertise of an experienced agency.
As stated by the insurance specialist in the commercial lines department of the agency:
Not long ago, a broker present at the agency received a phone call from a business office building.
“I need a good insurance plan for my new building,” he said.
All the factors about the property told the agent that it would be a simple transaction. With a new building made entirely of steel and concrete, there was no indication that any difficulty would emerge.
After an insurance search, a good policy was purchased at a good rate. After the initial inspection by the insurance company, the all-clear was granted and the comprehensive policy was bound to have a good rate – $ 12,000 per year for $ 11 million coverage.
Out of the blue, the insurance company told the servicing agency that it was necessary to conduct a sprinkler inspection on the building. As the commercial property sprinkler inspector took the position of the sprinkler system, he mentioned that there were four decorative panels on the outside walls that did not conform to his company’s non-combustible material criteria.
The former office construction policy was abruptly canceled by the insurance company, with the office building being upgraded for the insurance class of a frame structure.
The distraught office building owner was told that the agency’s commercial lines specialist would store a network of providers for him.
And he did – quite successfully, in fact.
The broker immediately got down to business. He negotiated with another insurance company, which initially offered a slightly higher rate than the threshold, and presented the office building owner with a tailor made policy that included wider coverage with cheaper premiums than the canceled policy.
You can guess the epilogue of this story. The agency’s tireless efforts to locate a winning conclusion was a highly satisfied client.