I am looking to purchase a business insurance package (commercial liability+property) for my business. I might sell the business in the near future. In such case, my insurance would be transferrable? Or should I have to cancel the insurance policy with penalty?
Only if the business is a corporation, and you are ACTUALLY transferring the stock. IE, nothing changes except the CEO.
Otherwise, policies are not normally transferrable. They have to be cancelled & rewritten for the new owner.
No.
Insurance is a contract between two parties and if there is a change in ownership of the business….then there is a change in the parties….thus the need for a new policy to be issued.
Since insurance is underwritten dependent on risk….a change in ownership may represent a change in the risk profile of the company…..which could raise or lower the premiums depending on how the risk changed.