How to get your business claims approved within grace period

Posted: Tue Apr 09, 2013 05:42 am Post Subject: Outcome of business insurance claims during grace period

How many premiums have you paid already? If you are in the grace period, this means that the insurance company is still giving you some time so that you can pay the premiums. Being in the grace period doesn't mean that your business insurance policy has been cancelled and therefore, the insurance company is liable to pay coverage for any legitimate claims.

Posted: Tue Apr 09, 2013 10:01 am Post Subject: Analyzing business insurance claim during grace period

Claims in the grace period are payable less the amount of premium due and subject to any deductible. For example:

Premium due on April 1, $500 due but not paid
Policy deductible $500
Grace period 15 days, coverage lapses at 12:01am on April 16.
Covered loss in the grace period, $1000.

Payment from insurance company = $0.

$500 deductible is accounted for, reducing payable claim to $500. $500 premium is paid with funds available to pay the claim. Net result: the claim has been "paid" in full. Insurance is in force until the next premium due date. Out of pocket expense to the insured is remainder of loss that requires repair, replacement, or other corrective action.

Posted: Tue Apr 09, 2013 01:05 pm Post Subject:

Grace period? As in your policy was already cancelled due to non-payment of premium and would only be reinstated if the back amount was paid? If so, there is no coverage after the date of cancellation unless you pay the premium to keep it active. In many cases the insurance company will also require that you sign a no-claim document.. This states that you have no knowledge of a claim during that grace period. If you'd not be able to sign it, they would not reinstate the policy. I'd recommend that you speak to your agent if you don't understand this "grace period". It should all have been spelled out.