Streetsmart insurance Blog
For most contractors, a General Liability insurance policy provides an additional layer of protection against third party lawsuits. If your client files a claim against your insurance policy, it should cover any legal fees or damages that are outlined in your contract.
Unfortunately, many GL policies have a built-in time limit that will prevent you from receiving benefits after your policy expires. This provision is known as a sunset clause, which states that your insurance company will only cover claims that are filed before a specified date.
Many insurance policies will have sunset clauses that prevent former policyholders from receiving benefits after a set number of years. Some insurance companies will also issue policies that don’t have a sunset clause, providing policyholders with an unlimited amount of time in which they can file a claim.
If you need to contact your former insurance company to respond to a third party claim, you will need to give them the date of the original loss so that they can determine whether the sunset clause will prevent you from accessing your benefits.
How Can I Take Advantage Of My Former Policy?
Understand Your Policy – When you purchase a GL insurance policy, ask your insurance provider if there is a sunset clause. If you cancel your policy or switch to another insurance provider, you should know how long you have to access the benefits of your former policy.
Know Your Options – If you plan on changing your insurance provider, talk with your insurance agent about the best policies that are available to you. Different insurance companies have different procedures when it comes to filing claims, and you should choose the right policy for your business and your budget.
Be Timely – Contact your former insurance provider about any third party claims as soon as you know they exist. By filing claims quickly and working with your insurance provider, you can take charge of the claims process and make sure that you have access to all of your benefits.
Street Smart Insurance is committed to providing affordable coverage. Whether you are looking for your first general liability insurance policy or you are shopping for a better price, our agents are ready to help. Call us at 732-462-8343 for a free quote!