Qualifying event for insurance

A change in your situation or coverage needs.


What is a qualifying event for insurance?

When something significant changes in your business, it’s known as a qualifying event. This could be anything from alterations to your business’s scope, or even ownership of the business. These events can affect your insurance needs and may require you to review and change your coverage. You typically have a two-month window to report these changes if you want to adjust your coverage.

Common examples of qualifying events

Some changes that typically count as qualifying events:

  • Changing ownership
  • Changing business focus
  • Expanding your employee base
  • Expanding your business property
  • Expanding your business location
  • Reducing your business production

Sometimes, you might not realize that your business has undergone a qualifying event that could affect your insurance. For instance, as your company grows, you might add more products or services, hire more employees, open new locations or acquire new company vehicles. These changes could mean you need additional insurance coverage.

Internal changes in company governance, such as succession planning, can also necessitate an insurance review. Check with your insurance company on what they consider qualifying events.

How do qualifying events typically impact your insurance coverage?

Qualifying events can impact your coverage in one of these ways:

  • You could lose coverage
  • You could end up with too little or too much coverage
  • New items aren’t insured
  • New employees aren’t covered
  • New facilities aren’t insured or aren’t covered enough
  • New inventories aren’t insured or aren’t covered enough

Your insurance premiums will likely change based on the new coverage after a qualifying event. If the event increases the need for coverage, you can expect your premiums to go up.

On the other hand, if the event reduces your need for coverage, your premiums could decrease. Each situation is unique and comes with its own set of needs. However, it’s important to note that any changes to your coverage usually need to be made within 30 days of the event to ensure you’re fully protected.

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At NEXT, we’re 100% dedicated to small businesses. With 24/7 access to your plans and policies, you’ll always be prepared for whatever comes your way. All you have to do is apply online and follow the prompts to access your custom instant quote in 10 minutes.

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Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.
General Liability insurance
General Liability
Protect yourself from accidents that cause physical injury or damaged property.
Professional Liability or Error and Omissions Insurance
Professional Liability/E&O
Shield yourself from lawsuits that claim your work errors caused financial losses.
Workers' Compensation Insurance
Workers’ Compensation
Cover medical bills and lost wages if your employees have an accident at work.
Commercial Auto Insurance
Commercial Auto
Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.
Tools & Equipment Insurance
Tools & Equipment
Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.
Commercial Property Insurance
Commercial Property
Keep your building, inventory and equipment protected from fire or water damage.
Business Owner’s Policy Insurance
Business Owner’s Policy
Combine general liability and commercial property into one policy to protect your business.
* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
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Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.