What would you do if you received this alarming message out of the blue?
“YOUR MLCC LICENSE HAS BEEN SUSPENDED DUE TO NO CURRENT PROOF OF FINANCIAL RESPONSIBILITY/LIQUOR LIABILITY INSURANCE ON FILE. THIS NEEDS TO BE TAKEN CARE OF IMMEDIATELY.”
That’s exactly what happened to one of my long-time clients, a property owner with multiple businesses. They had renewed their insurance just a month earlier, so this notification didn’t make any sense. They immediately called me, and I promised to get to the bottom of it.
What I discovered revealed just how damaging the wrong insurance agent can be to your business.
What Went Wrong?
While digging into the issue, I learned that another agent had sent my client a quote before the renewal date. The proposal was unsolicited and riddled with issues: incorrect business names, incomplete coverage, and limits that didn’t meet their needs. My client shared it with me, and I advised against moving forward.
Here’s the twist: that agent took it upon themselves to file a new policy with the MLCC without my client’s approval. They did not sign an application or provide any payment. They didn't even give verbal permission to move forward. But when my client confirmed they weren’t switching, the agent quickly canceled the policy just four days later.
The result?
The MLCC marked my client’s existing policy as inactive on the renewal date, assuming it had been replaced.
The four-day policy gap caused the MLCC system to flag their account, leading to a temporary license suspension and a formal warning.
The Aftermath
Resolving this issue took hours of back-and-forth with the MLCC and the insurance company. Fortunately, we were able to restore my client’s license by resubmitting the same Liquor Liability coverage that was in place, but the unnecessary stress and risk could have been avoided entirely.
While it was either the inexperience or wishful thinking by the other agent, the burden to provide proof to the MLCC ultimately falls on the licensee. They just never expected they'd need to contact our agency to refile the same Liquor Liability that was in place for the years prior.
Why You Insurance Agent Matters
This situation underscores why choosing a knowledgeable and reliable insurance professional is so important. Insurance isn’t just about getting a good price; it’s about protecting your business and ensuring every detail is handled correctly.
The wrong agent not only submitted unauthorized information but also put my client’s entire business at risk. Insurance connects to critical aspects of your operations, including licensing, lending, and contractual obligations. One mistake can trigger a cascade of problems.
The Takeaway
Don’t let price or pushy sales tactics lead you astray. Your insurance agent should be someone you trust to:
Fully understand your business needs.
Provide complete and compliant coverage.
Work tirelessly to protect your interests.
You wouldn’t shop around for the cheapest lawyer or CPA when the stakes are high—your insurance agent deserves the same consideration.
At Top O’ Michigan, we don’t just sell insurance; we build relationships, protect businesses, and ensure our clients are covered when it matters most. Make sure you’re working with someone who puts your business first.
Because with the wrong agent, the cost isn’t just a policy—it’s your peace of mind.
Take Action and Protect Your Business Today
Don't let a preventable mistake jeopardize your business. At Top O' Michigan, we specialize in providing the right coverage, without overpaying. We’re here to protect your operations, your reputation, and your peace of mind.
If you’re unsure about your current coverage or the professionalism of your agent, let’s talk. Contact us today for a no-obligation review of your insurance program. If you're in a good spot, we'll tell you or if there are areas we can improve, we'll show you.
Together, we can ensure your business is always protected.
A third-generation insurance agency owner and agent since 2007, Tyler Bartosh is the consummate “insurance geek,” using his passion for business, knowledge of insurance, and advocacy for clients to help serve as the expert buyer of insurance. He helps businesses implement risk management strategies that save both time and money, so those resources can be put towards other initiatives in your company.
Away from his career in insurance, he enjoys spending time with his family & friends, volunteering throughout the community, golf, fishing, snowboarding, hiking and virtually anything outdoors and traveling to see live music. Tyler has a wife Emily (who is also an underwriter in the insurance industry), their dog Lucy and a baby girl, Sophie Constance.
About Top O' Michigan Insurance Solutions:
At Top O’ Michigan Insurance Solutions, we pride ourselves on using our skills to provide clients with competitive pricing, stability and understanding, and peace of mind. With seven locations throughout Michigan and 24/7 client access, our team is your 'expert buyer' of insurance for home, auto, farm, boat, motorcycle, business owners, workers compensation, bonds, life and health, employee benefits and more.
We will provide unparalleled and caring service to our clients through our knowledgeable staff and give back to our employees, agency, industry and our communities. Part of our mission is to give back to the Michigan communities we serve. This is something we take action on through We Care and you can learn more about our community outreach at TOMIA247.com/WeCare.
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Disclaimer: This Blog/Web Site does not provide insurance or legal advice. This site is for educational purposes only as well as to provide you with general information and a general understanding of insurance, not to provide specific legal advice or specific contract advice. Viewing this site, receipt of information contained on this site, or the transmission of information from or to this site does not constitute a client relationship.
The information on this Blog/Web Site is not intended to be a substitute for professional insurance or legal advice. Always seek the advice of a licensed agent in your state pertaining to insurance and legal issues.
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