Risky Business
What's the difference between a Non-Renewal and a Cancellation
Hi Everyone,
You may or may not know that there are a number of Owner Operators being Non-Renewed on their Nontruck Liability and Physical Damage policies.
To refresh your memory, Nontruck Liability, or "NTL", is your Liability while you're driving around while not under dispatch. When you hit someone or something, you're "liable to get sued", is a good way to remember it. Most of you carry $1 Million Nontruck Liability.
Physical Damage, or "Phys Dam", is coverage for the vehicle itself, think "Comp & Collision". Comp covers your vehicle for fire/theft/vandalism/flood, animal hits and windshields...chips are free on a good policy. Collision covers your vehicle when it hits another vehicle or flips over. So you pay your "Deductible" of $100 to $1,000, then the insurance company pays you up to the Actual Cash Value of your vehicle.
OK, so we're up to speed on Insurance 101...what is confusing, are the terms Non-Renewal versus Cancellation. It's important to understand the difference, because a number of you are going through this, unfortunately.
Non-Renewal is what the insurance company is allowed to do AT THE RENEWAL DATE of the policy if they don't wish you insure you anymore.
There is NO 30 day Grace period on a Non-Renewal.
This is being confused with "Cancellation", which means you havn't paid your bill, and the insurance company is giving you your 30 day Grace period. (And really, who has NEVER been late once in their life, so everyone is familiar with the 30 day Grace period.)
The problem is that the Non-Renewals currently going on are being confused with cancellations...so folks are thinking they have 30 days...they don't!
All insurance is written in "terms", usually 1 year, so once that "term" is over, the insurance company has no obligation at all per contract.
If you have reason to believe you could be someone who is being non-renewed, I encourage you to call your agent or whoever took care of your NTL/Phys Dam policy to doublecheck.
...I'd hate to see anyone mistakingly think they have coverage when they don't.
Warm Regards, Shelly Benisch, CIC w/ Commercial Insurance Solutions
[email protected] 866.864.1511