Can a insurance company refuse clients after signing the contract w/o any reason?

Question

I already paid the $$ to my insurance company for my business mobile catering business. After 2 months, my agent refuse my contract and said it is in high risk. Do they have the right to do that?

Answer 1

Most insurance contracts have a clause in them that states the insurer may cancel within the first 60 days of the policy for ANY reason.  And that is if the policy was issued.  So, yes, they have the right to do that.  The agent submitted the application to the company, the underwriter reviewed it & decided that it didn't fit in with their guidelines & declined it.

Go to an independent agent (or a few), see what they have to offer you for coverage.

Answer 2

They gave you a reason - high risk. And yes, they can refuse to cover you. Have your agent check with other companies; if he can't find a company to cover you find another agent who works with several companies.

Answer 3

Your agent couldn't find a company willing to write you.

Yes, they can do that.  They can't MAKE an insurance company give you a policy.

I'd guess, you paid them a BROKERS fee, to attempt to find coverage for you.  Check the paper, they should have disclosed what the money you gave them, was for.  

Next time, go to a larger agency.