What to do if our commercial liability insurance carrier is now requesting our financial statements?

Get Legal Help Today

secured lock Secured with SHA-256 Encryption

What to do if our commercial liability insurance carrier is now requesting our financial statements?

We have been in business for 20 years and haven’t had any claims. We have audits with them every policy year and already supply them with the information they request. Can they cancel our policy if we don’t now give them our financial statements?

Asked on June 27, 2013 under Business Law, Washington

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Whether they can cancel the policy during the middle of a policy term (e.g. if the policy is bought on an annual basis, before the end of the policy year) depends on what the policy itself says: does it give the insurer the right to seek additional information or to verify information at this time? If so, they can do this, since the insurance policy is a contract: they can exercise any rights given to them under the policy, and if you do not comply, you will be in breach of the policy, most likely giving them the right to terminate under the terms of the policy.

If they can't cancel mid-year, they can almost certainly refuse to review the policy again if you do not provide them the information they require.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption