It is unlikely that insurance companies will cancel your cargo insurance policy for no reason. If they do, they are likely to give you enough notice to obtain new coverage within 30 or 60 days. If the reason for cancellation isn’t included in the notice, you should get in touch with a customer service representative to figure out your next steps.
As soon as you receive notice of your policy’s termination, the best thing to do is reach out to your insurance company to see if it can be reinstated. You should do this as soon as possible so that you can continue operating. However, if you cannot reinstate your policy it may be best to contact other reputable cargo insurance companies for an alternative.
For motor carriers and freight forwarders transporting household goods, cargo insurance is a legal requirement. However, it may be possible for an insurance company to cancel your cargo insurance coverage for several reasons. This includes:
If you don’t manage to renew your cargo insurance policy after it has been canceled and continue to operate your business, you may face legal fines, higher insurance premiums in the future, and other more severe consequences. Depending on the state you live in, you may also seek aid from the Department of Insurance and appeal for insurance renewal.
Read on to learn more about what exclusions to cargo coverage are typically allowed!
