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Insurance Cancelled or Non-Renewed: Answers & Solutions to Keep Your Valuable Coverage

Your truck breaks down….

The price of oil drops again….

Two employees didn’t show up for work today….

…….AND you received an insurance cancellation or non-renewal notice in the mail today.

Murphy’s law has a strong grip on you today………

Bad things happen to good people all the time.  We’ve all been there before.  We can’t help you with your truck breaking down, increase the price of oil, or get your employees to show up on time for work ……..BUT……..We can help you procure a new insurance policy and walk you through the Non-Renewal/Cancellation process.

 

“WHY AM I GETTING CANCELLED OR NON-RENEWED?”

There are many reasons why an insurer will cancel or non-renew your insurance policies. Maybe you are being cancelled or non-renewed due to one of the following reasons:

  • Claims, claims, and claims: At the end of the day, the dollar matters.  Insurance companies can still make money even with a 100% combined loss ratio, but you have had one too many claims for them to continue to insure your company at this point.
  • Citations, Inspections, Compliance Issues, Oh My! Your Safety Measurement System (SMS with Federal Motor carrier Safety Administration) Out of Service Rates exceed the National Average % and exceed the insurance company’s comfort level, so they issue a non-renewal.
  • “I mailed my check yesterday.” You have missed several payments and your inconsistent insurance payments have caused for concern with the insurer and they would like to part ways. Consistency is key.
  • It’s not you, it’s the insurance carrier: You have literally done nothing wrong. The insurance company has changed their appetite and is no longer offering coverage to companies offering services such as yours.

 

What Do I Do Now? Answer these questions.

 WHY?

Determine the reason(s) why your company has received a non-renewal notice.

  • Too many claims?
  • Unfavorable “Safer” scores?
  • Too many late payments?
  • Carrier changed their appetite?

WHAT?

After determining why you were cancelled, explain what you have done to prevent or lower your probability of the same thing happening again.

 

  • Sending in late payments?……. Try an automatic draft.
  • Vehicles Out of Service? …….Hire a full time mechanic to keep them on the road.
  • Too many claims? Add a more stringent safety program such as incorporating a “No Cell Phone Use” policy while operating a vehicle (We can provide this for you for free.)

 

WHO IS GOING TO HELP ME? 

 If you have received the notice of cancellation or non-renewal your current agent has received a copy as well.

  • Has your agent called you offering advice and a game plan?
  • Have you had other issues with your current agency?
  • Problems issuing certificates on time?
  • Registering filings on time?
  • Returning phone calls?
  • Does your agent look for competitive quotes and negotiate the best terms possible for your company?
  • Is your agent only available when it’s time to collect your insurance premiums? Check out our blog 9 Signs You Need a New Oil and Gas Insurance Agent We are here to help you.

 

TIME IS OF THE ESSENCE

When did you receive the notice and how many days do you have to get a new policy in place?

  • 45 days? 30 days? 15 days? A week?!
  • The countdown has started, so now you need a good plan in the works today!

 

“WHAT INFORMATION DO YOU NEED FROM ME”?

 

  • VEHICLE SCHEDULE: We need the year, make, model, and V.I.N. If you want physical damage coverage, we need to know the cost new of each vehicle.

 

  • DRIVER SCHEDULE: We need your drivers’ name, date of birth, driver’s license number.

 

  • LOSS HISTORY REPORTS: We need 5 years of your currently valued loss history reports showing all incurred losses. The date on the loss history reports should be “currently valued.” Currently valued means that the reports should have been generated within the last 90 days.

 

  • EXPLANATION: Please explain what you have done to remedy future claims, premium payment issues, etc.

 

Want a more specific game plan?

Contact us today to discuss the details and get started today. 918-504-6723.

 

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