Weber Services had business insurance with American Casualty Company for years, paid premiums and had no claims. Then in 2007 we filed a claim. We were being sued by one of our customers for "Defamation of character" after we took him to small claims court and won. American Casualty admitted we had coverage and supplied us with an attorney. When our attorney pressed for financial information, the customer refused and eventual we dismissed the case. We have since learned that the customer is being investigated by the Missouri IRS and that he is no longer in business. We feel it is unfair of American Casualty to cancel us after one claim. They eagerly took our premium money all those years with no claims but once we have a claim, we get cancelled. This isn't right.

I tend to agree that filing one claim -- for protection against a bogus lawsuit -- seems like no reason to cancel coverage. However, when you buy P&C insurance, for your business or home, you are not getting married to the insurance company for life. At most it is a 1 year contract. Either of you can walk at the end of the year. I have no way of knowing why the carrier refuses to renew, and even if it is totally arbitrary and unreasonable, it is still within its rights to do so, absent extra-ordinarily unusual situations where the law requires renewal. Why not send a polite letter, expressing your incredulity, to the CEO of the company asking him to renew it?