Reinstate cancelled policy or opt for new policy?

Go Green · 09-07-2008, 09:30 PM

Have client asking for advice on situation where his commercial vehicle insurance, liability, and workers comp was cancelled due to non payment. He has been tied up going through a divorce and behind on everything. What is better to do, either reinstate policies or shop for new ones. I am a L & H agent, and clueless when it comes to P & C. Any advice would be appreciated. Thanks in advance.

DJAdam · 09-07-2008, 10:36 PM

Does your E&O cover P&C? If not I would refer him to a P&C guy posthaste.

djs · 09-08-2008, 01:32 AM

Depends on the lapse time. After 60 days, even the same carrier will treat them as new policies usually. For commercial, especially workers comp, this is very problematic, since many carriers won't accept businesses with lapses. This will make you go to carriers who usually cost more.

I would definitely try the reinstate first, assuming he had decent rates before the lapse.

Of course, if in CA, I would refer him to me (shameless plug).

Dan

lisar1208 · 09-08-2008, 10:54 AM

You should check the company policy. Our company is 30 days then it has to be a new policy.