Even though it may not be a legal requirement for trucking companies, many motor carriers often need proof of non-trucking liability insurance. This is because it can provide additional coverage when a truck is not being used for business purposes such as helping a friend move or doing errands.
If you are unhappy with your non-trucking liability insurance plan, you may usually cancel your policy at any time. However, there may be cancellation penalties that apply if you terminate your contract. Insurers can also cancel on-trucking liability insurance in certain circumstances but are legally required to provide notice in writing to the insured party.
If you choose to cancel your trucking insurance plan, you should check the fine print of your contract to see if there are any fines or penalties you’ll have to pay. You may also have to pay the remaining balance of premiums on your account.
Insurance companies can also cancel your non-trucking liability insurance coverage with a 10-day notice for non-payment or a 30 to 35-day notice for other reasons, but this is unlikely to happen in the middle of a term unless you have made misleading claims in your non-trucking liability insurance application.
The MCS-90 endorsement and federal regulations state that insurance policies can’t be canceled until 30 days after written notice has been given to the FMCSA by the insurance company, with 35 days of notice in writing to the other party. They will also need to comply with state law depending on their location.
To learn more about the average cost of non-trucking liability insurance, check out the rest of Assured Standard!
Arthur Williamson graduated with a degree in Business and Management at the University of California, Berkeley. He is knowledgeable about what small and big businesses require to keep operations moving.