Let’s talk about being dumped by your insurer.
The easiest way to accomplish this is to skip paying the premium. But this is not as simple as it sounds. If you get cancelled for non-payment of your premium you may have a tough time finding another insurer to start new coverage. Most insurers don’t want what they view as poor paying clients. As your insurance agent, I can’t lie to a prospective insurer and tell them you’re a good paying client if you’re not. I need to present you in a good but truthful light.
The next easiest way to get cancelled is to ignore or not follow loss control/risk management recommendations from your insurer. If your insurer makes recommendations while inspecting your shop or vessel, you should be present so you can immediately correct anything that they observe. Your insurer actually wants you there so they have someone who knows how things work. It cuts down on their guessing.
If you’ve had a lot of small claims you may be in trouble too. There’s an old adage in the insurance world that “frequency breeds severity” and I’ve seen it come true many times. Many small claims are often indicative of a lack of due diligence. To help cure this, look for things that cause these claims and correct the conditions, whether they are a result of human error or poor maintenance.
If you do have a claim, make sure you follow the instructions from the claims adjuster or your insurer’s lawyer who is representing you. This is absolutely not the time to go off on your own. Your insurance policy says that you must cooperate with your insurer. This means you must tell them the truth and follow their instructions.
Finally, it is important to note that ocean marine liability insurance policies have one thing in common. Most say that if you admit fault, liability, and negligence — or even if you say you’re sorry — it may void the policy. I counsel my clients all the time about this. I’ve never seen an insurer deny coverage for this reason, but I don’t want you to take the chance.
