Passenger Vessels | Commercial Marine | Professional Liability
BMI News Summer 2005 Online Issue
Policy
Cancellations
by
Cindy Harb
Our marine policies are automatically renewed from year to year by the companies. Each year we have insured's who have sold their boats or have replaced their insurance for a variety of reasons. Because the policy is automatically renewed you as the insured must sign a release form to cancel the insurance. If you do not contact our office to let us know that you need to cancel the insurance we are forced to send a legal notice for nonpayment or in the case of direct bill from the Company, they will cancel you for NONPAYMENT.
When this happens it is very difficult to rewrite the insurance for a new boat or when you come back to us for coverage. The Companies look at the cancellation for nonpayment as a black mark on your record. This could be an indication that you are not maintaining your boat properly or have financial problems
Our recommendation is that you notify us as soon as you no longer need the insurance. We will then send you a form to sign giving us permission to cancel and state the reason why. Then in the future your record will be clean and we will have more markets for your insurance. The companies do ask if your insurance has ever been cancelled, and for what reason.
If you have any questions about this please call me at the office at ext. 16 and I will be happy to discuss this procedure with you. Remember if you cancel your insurance during the year the Companies usually will give you a credit.
Cindy Harb
Accountant
