How Long to Keep Business Insurance Policies | Retain and Destroy Insurance Policies

You are likely to have many policies as a business owner. Is it possible to just throw away all the paperwork after so many years? It is not always possible. You only need to keep the most recent coverage summary page for certain types of property and liability policies (e.g. home, auto, umbrella), which is known as "declarations".

How Long to Keep Business Insurance Policies

Many business insurance companies will keep an electronic copy for many years. Keep the policy booklet, and make sure to replace it when you get new ones from your insurer. Find out more about which policy type you need and how long they should be kept.

    

Commercial Auto Insurance

Your personal car insurance might not cover you if you drive a vehicle for work. Commercial vehicle insurance is used by businesses to protect their vehicles, vans and trucks.

Commercial auto insurance is similar to a personal policy. It covers things like collision, liability, medical payments, and uninsured motorist coverage. Your commercial auto policy should be kept forever because it is an occurrence-based policy. It is often sufficient to keep the declarations document in order to prove coverage.

DBA Insurance

Defense Base Act (DBA), provides workers' compensation coverage to contractors who work for government contracts in countries other than the United States. Contractor employees who are injured during employment can receive medical treatment and compensation through the DBA.

DBA insurance is continuous coverage that continues until it is canceled. It is best to keep all policy papers and any amendments until you cancel the coverage. You should immediately destroy the policy, as it may contain personal information.

Directors and Officers

Directors and officers insurance protects directors and officers from claims that may arise while they are serving as officers or members of a board. D&O claims are less common for smaller businesses. However, it can be costly to fight lawsuits. A directors and officers policy can be discarded after its term ends or replaced with a new policy.

Errors or omissions

Business insurance policiesErrors & omissions (E&O), insurance protects business owners from claims of negligence and failure to perform professional duties. E&O insurance is available to many individuals, including accountants, lawyers, financial advisers, accountants and real estate agents.

E&O insurance is essential for professionals offering services. Anyone can sue your company if they feel they were harmed by your product. This type of insurance is best kept in your possession until it expires or is cancelled. You can easily dispose of the policy, just like a D&O.

General Liability

Businesses must have general liability coverage to protect themselves. You don't have to pay for the high costs of settlements or out-of-court litigation. Business owners can protect themselves against financial catastrophe by purchasing general liability insurance. To be protected against the unexpected, keep your general liability policies in force.

Medical Malpractice Insurance

Medical malpractice insurance is also known as medical professional liability insurance. It protects doctors and licensed health care professionals against liability for wrongful acts that cause property damage, medical bills, or bodily harm. To avoid future problems, it is a good idea to keep your medical malpractice insurance policy in force.

Property coverage

Business insurance policiesCommercial Property coverage protects businesses from financial loss due to property damage. Property coverage protects your assets, regardless of whether you own a building or rent it. Although policies may vary in coverage, many include specific events that could result in a loss such as a fire that causes damage to your building or contents.

Property insurance covers everything, including the building itself. It also covers inventory, furniture, equipment, landscaping, and even your outside sign. It is recommended that you keep your business insurance policy, or at least the declarations page.

Umbrella Liability Insurance

Umbrella liability insurance protects business owners against major lawsuits that can wreak havoc upon their assets and financial future. This insurance adds additional liability coverage beyond the current policy limits and is usually activated after existing policies are exhausted.

Umbrella liability insurance may also cover claims not covered by other policies such as slander or false arrest. Your umbrella insurance policy should be kept forever, just like other occurrence-based policies.

When should you keep Business Insurance Policies ?

To ensure that vital business insurance policies are not triggered, many companies have instituted records retention policies. Even after policies have expired, occurrence-based liability policies such as commercial auto or general liability may still be in effect. Instance-based liability policies, such as business auto and commercial general liability, should be kept forever and not destroyed.

Although it is wise to keep property policies in place for life, many businesses prefer to retain them for six years. Because property losses can be identified after they happen, it is more important to keep these policies in place for longer periods than with occurrence-based policies.

Claims-made policies such as professional liability and directors and officers' insurance, like directors and officers' insurance, can only be triggered by any claims against an insured business during the policy term and the period following expiration. Most businesses agree that there is a reasonable retention period of approximately six years for claims-made policies. This period begins after the policy's expiration.

Other policies like workers compensation should be kept forever. It may seem tempting to just throw away all your business insurance policies. These policies should be kept safe and accessible easily.

Commercial Auto Insurance

Personal car insurance may not provide enough protection if you use your vehicle for work purposes. For businesses, commercial vehicle insurance covers any vehicles, vans or trucks they use in their business.

Like a personal auto policy but with commercial auto insurance, you get coverage for collision, liability and medical payments. You should keep your commercial auto insurance policy as an occurrence-based plan. However, the declarations document can be used to verify coverage.

DBA Insurance

Defense Base Act (DBA), which provides insurance coverage for contractors working under U.S. government contracts, provides workers' comp-type coverage. The DBA covers employees who have been injured while on the job and provides compensation.

DBA insurance offers continuous coverage up to the point that it is canceled. Therefore, it is important to retain the policy papers along with any amendments. It is best to throw away the policy once it has been cancelled.

Directors and Officers

Directors and Officers Liability Insurance is a type insurance that protects officers and directors against any claims they may have while serving on a board or as an officer. D&O lawsuits may not be common for small businesses. But, if they do, it can be expensive to fight the lawsuits. You can usually get a replacement policy or end the term of a policy covering directors and officers.

Errors and omissions

E&O insurance for business policies. This insurance covers business owners against negligence claims or the failure to fulfill professional duties. E&O insurance can be beneficial to many people, including lawyers and financial advisors. This includes accountants, financial advisors (real estate agents), financial consultants, financial advisors as well as architects and engineers.

E&O insurance for professionals who provide services is mandatory as anyone can sue you business if they feel that they have been harmed by your product. You should keep this type of insurance until your coverage expires or you cancel it. The policy can be safely discarded after the term ends or when you receive a replacement.

General Liability

Businesses should have general liability as a form of protection. Insurance policies can protect you from the high-priced expenses of court settlements and litigation. Businesses can get general liability insurance to protect them against any unexpected risks that could lead to financial ruin. You can keep your general liability policy for as long as you like to be protected from the unforeseeable.

Medical Malpractice Coverage

Medical malpractice insurance, also known as medical professional insurance, protects licensed physicians and health care professionals from any liability arising out of wrongful actions that result in property damage, bodily injury, or medical expenses. You should not cancel your medical malpractice policy to avoid being exposed to potential future problems.

Property Insurance

Insurance policies for businesses. Commercial property coverage protects your business against major financial losses in the event that there is property damage. Property coverage will protect your assets regardless of whether your building is your own or leased. While policies are not all the same, many policies include specific events that can lead to loss. For example, a fire that damages your building and contents.

Property insurance also covers the building, as well as furniture, inventory, landscaping and your outdoor sign. It is recommended to maintain your business insurance policy.

Umbrella Liability Insurance

Umbrella insurance is designed to protect business owners against major lawsuits that could cause financial ruin and damage to their assets. This extra liability insurance covers additional liability beyond what is covered by current policies. It usually kicks in after all existing policies have expired.

Umbrella insurance can provide coverage for certain claims that are not covered by other policies like slander, false arrest or libel. You should keep your umbrella policy, like all occurrence-based insurance policies, for as long as you can.

When is it a good idea to keep a  Business Insurance Policies?

Many businesses have adopted records retention policies to protect their business insurance policies. Sometimes, insurance policies that are based on occurrences, such as commercial general liability and business auto, can be activated long after the policy expires. It is important to keep occurrence-based policies in place and not throw them away.

It is smart to retain property insurance policies for as long as possible, but many businesses opt to retain them for at least six years. These policies should be kept for longer periods of time than occurrence-based liability policies.

Claims-made insurance policies (directors and officers' liability insurance and professional responsibility) are only activated by claims made against an insured company during the policy period, and for the entire "tail" after expiration. Most businesses agree that a reasonable retention time for such claims-made insurance policies is six years after the end of the tail period.

Other policies such as workers comp policies should be retained for all time. Although it might be tempting to throw out all of your business insurance policies at once, this is not the best decision. These policies will be important to you and should be kept safe so that they are easily accessible if necessary.

How long to keep expired homeowners insurance policies?

Homeowners insurance policies can expire for a number of reasons, such as when the owner moves out of state or sells the home. If your policy has expired, it's important to renew it as soon as possible to ensure that you're covered in case of an emergency. 

Generally, homeowners insurance policies will expire six months after the policy's effective date. However, if you have files updated with the property addresses and recent photos, your policy may be valid for up to 12 months from the policy's effective date. 

If you don't renew your homeowners insurance policy within six months after it expires, your insurer may cancel your coverage and you'll be responsible for any fees associated with cancelling your policy.

Is there any reason to keep old insurance policies?

Typically, when people get a new policy, they want to upgrade to the newest and best coverage. However, some people may still want to keep their old policy in case something changes or they need it for a specific purpose.  For example, if you have homeowners insurance and your house is damaged in a storm but you don't have flood insurance, you might be able to use your homeowners policy as proof of insurance and get a discount on your flood insurance.   Or, if you are in the military and move frequently, keeping old policies from different counties can help with moving costs.

Insurance record retention requirements by state :

As the use of technology grows, so does the need for businesses to keep accurate records. But what about insurance records? While many companies maintain paper copies of their policies and files, others rely on electronic systems. And as state laws regarding record retention change, so too must businesses ensure that they are in compliance. 

Below is a list of the nine states with the most strict record retention requirements when it comes to insurance records: 

1. New York 

2. California 

3. Illinois 

4. Florida 

5. Pennsylvania 

6. Texas 

7. Maryland 

Insurance company record retention guidelines :

In order to maintain compliance with insurance company record retention guidelines, it is important for organizations to have a system in place that tracks the disposal of records. This system should include tracking when records are destroyed, transferred to another organization, or removed from storage. Additionally, the system should also track who has access to the records and when they were last accessed.

How long must insurers keep records of claims ?

When an insurance company receives a claim, it is important for the company to have accurate records of all details surrounding the claim. This information can be used to determine whether or not the claim was valid and to help with future claims. 

Insurance companies are typically required by law to keep these records for at least 6 years. However, there are some exceptions which may apply based on specific circumstances. 

It is important for claimants and insurers to understand their respective rights and obligations when it comes to keeping records of claims. If either party does not comply with the law, they may face legal consequences.

How long do medical insurance companies keep records ?

Medical insurance companies keep patient records for a specific length of time. Medicaid, Medicare, and most private health insurance companies maintain records for a minimum of five years. Some companies may keep records for up to ten years. After the five or ten year period is up, the medical record becomes inactive and is no longer accessible by the company.

How long to keep car insurance policies?

Car insurance policies can last anywhere from six months to a year. However, most people keep their policies for around six months. After that, they usually have to renew them.  

Some people keep their car insurance policies for a year or even longer. But, if you change your address, you may have to get new car insurance in that state.  

If you have an accident and your policy covers damages to other people's property, then you will likely have to pay for those damages yourself.

How long to keep life insurance policy ?

When considering how long to keep life insurance, there are a few factors to consider. First, it is important to understand the purpose of the policy. A life insurance policy can be used for many different reasons, including retirement savings and estate planning. Second, think about your personal needs and budget. How much money do you need to maintain a comfortable lifestyle in case of an unexpected death? Third, consider the age of your beneficiaries. Younger beneficiaries require less money than older beneficiaries. Finally, review your policy every year and make any necessary changes.