What Can Disqualify You from Getting Commercial Insurance?

Things That Disqualify You from Getting Commercial Insurance in San Diego, CA

Not all business ventures require you to have commercial insurance. However, it is not a good idea for you to leave things to chance and operate without adequate coverage. Commercial policies are issued at the discretion of the insurance company. Under some circumstances, they may refuse to offer you a policy or specific coverage. The business of insurance revolves around the perception of risk, but some situations are bound to raise red flags. Here are some of the situations that may disqualify you from getting commercial insurance in National City.

Bankruptcy

There was a time when the bankruptcy code prompted some individuals to repeatedly file for Chapter 7 and Chapter 13 insolvency. A bankruptcy will not automatically disqualify you from commercial insurance coverage, but it may exclude you from competitively priced premiums. You may still qualify for specialty policies, and this may also extend to the rest of the situations listed herein.

Prior Record of Insurance Fraud

This could be a major strike against you when shopping for commercial coverage, particularly if you have been convicted of insurance fraud or if an insurer voided a policy after an investigation. Willful arson and submitting false claims are two factors insurance companies seek to distance themselves from.

Risky and Dangerous Business Activities

If your business regularly puts your employees or clients in danger, your insurance agent will recommend specialty policies. Examples may include bungee cord jumping, hostage rescue, disposal of hazardous waste, skydiving, and handling of explosives.

Criminal Background

Some major felony convictions may preclude you from getting business insurance, but not automatically. If the insurance application has a check mark for felony convictions, you will likely be asked to explain the situation and provide documentation to be reviewed by an underwriter. If you have a previous felony record for possession of cannabis that would be considered a misdemeanor under the modern laws of the Golden State, the insurance company may not be too concerned about it.

Adverse Credit History

Many individuals were left with atrocious credit records in the wake of the Great Recession. If your credit history shows a string of delinquencies, you will not necessarily be denied coverage. However, you might not be able to spread out your premium payments over a few months. You can also expect to be disqualified if your record shows a history of not paying your insurance premiums on time.

Dangerous Premises

If your brick-and-mortar business is located in a dangerous part of town, you may have to install a sophisticated alarm and surveillance system or else risk being disqualified from liability coverage. In some cases, you may also have to keep an armed guard on the premises. Another disqualifying factor would be if your store, office, or shop has a history of being subject to physical injury claims filed by customers or staff members.

To learn more about possible disqualifications for commercial insurance, reach out to the insurance experts at American Tri-Star. In addition to commercial insurance, we also offer affordable and reliable health, home, and car insurance in National City. Call 619-474-3900 today to speak with one of our friendly agents and receive a free quote.