Bankruptcy and InsuranceBusiness bankruptcies have increased by over 64% in 2009 from what they were in 2008. We are on track to have in excess of 60,000 businesses in the United States who will file bankruptcy by the end of 2009. When you combine both personal and business bankruptcies we are looking at over 1.4 million by the end of 2009.  Bankruptcies with regards to general liability insurance can be both a positive and negative experience. The good news about bankruptcies with regards to your general liability insurance is that there are provisions in almost every policy that protect the consumer from the insurance company canceling your insurance due to bankruptcy. What that means for you as the consumer is that the insurance company will continue to pay claims until the end of the policy year. That is about it as far as the good news goes. The bad news is that you have very little chance of continuing your insurance while in bankruptcy. Most insurance companies nowadays run financial credit checks on the businesses that they insure. Maintaining sound business practices and good D&B reports and having above average FICO scores can help ensure that you receive the most competitive pricing possible for your insurance portfolio. Especially in business, there tends to be many more claims and losses in a bankruptcy company than a company that is not in bankruptcy. Making sure you have a provision in your general liability policy to protect you from your insurance been canceled during bankruptcy is tantamount to success for your small business. R. Glenn Matsen, CEO, MBA, CPCU, ARM, CLU, ChFC has over 30 years of risk management experience in providing insurance solutions for the small business owners needs. His website contains detailed information on tech insurance Comp and technology professional liability. Article Source: http://EzineArticles.com/?expert=Glenn_Matsen |
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