Our Carrier Non-Renewed Us: What To Do Now

A nonrenewal notice feels personal, but it is often a business decision by one carrier rather than a judgment that the company cannot be insured. Carriers leave classes of business, states and property types for their own reasons, and good accounts get caught in those decisions. What matters now is time: how many days remain, what the market needs to see, and which coverage gaps could open if the replacement is rushed. Owners who act in the first week usually have more choices than those who wait.

How much notice should we have received?

Georgia's insurance department summarizes the rules in its business guide to insurance: for workers' compensation, carriers must give businesses 75 days' advance notice of a nonrenewal; for other business property and liability insurance, 45 days. Check the date on the notice against the policy expiration date. If the notice seems late or incomplete, raise it with your agent right away. Whether a particular notice met the legal requirements is a question for qualified legal counsel.

Why do carriers nonrenew?

Common reasons fall into four groups:

1. Losses. Frequent claims or one large claim can push an account outside the carrier's guidelines.
2. Appetite changes. The carrier stops writing a type of business, a region or older buildings.
3. Missing information. Unanswered questions, overdue inspections or uncompleted recommendations can lead to a nonrenewal.
4. Reinsurance and capacity. Carriers reduce exposure when their own costs rise. Our article on strategic positioning in a hard insurance market explains how those cycles work.

Ask your agent for the specific reason in writing. It shapes the whole replacement strategy.

Plan the budget at the same time. A replacement policy from a new carrier, or from a specialty market, may cost noticeably more for the first year, and some markets require a larger down payment. Tell your finance team early so a higher bill does not arrive as a surprise in the same month as payroll or a loan covenant test.

What should we do in the first week?

1. Confirm the dates. Know exactly when coverage ends and which policies are affected.
2. Gather the submission. Current policies, five years of loss runs (each carrier's record of past claims), payroll and revenue, property values, a driver list and a short description of operations and safety practices.
3. Answer the reason. If losses drove the decision, explain what changed: new safety measures, a closed operation, a fixed building issue. Underwriters respond to a credible story backed by documents.
4. Market early and broadly. Approach carriers that fit the account, not just the incumbent's competitors.
5. Keep paying the current policy. A lapse in payment turns a nonrenewal into a cancellation and a harder placement.

What if standard carriers will not quote?

There are other markets, though often at higher cost and with narrower terms. The state's guide describes surplus lines insurers, which write hard-to-place risks through licensed surplus lines brokers but do not follow the same rate and form rules and lack the protection of the state insolvency pool. For workers' compensation and commercial auto, assigned risk plans exist as a last resort, and for property, a FAIR plan; the guide notes these generally cost more. Use them as a bridge while the account is improved, not as a permanent home.

What gaps should we watch for in a replacement policy?

A rushed replacement can quietly change coverage. Compare the new quote line by line with the expiring policy: exclusions, sublimits, deductibles, named insureds and any claims-made dates. For claims-made coverage, confirm the retroactive date carries over, or past work could be left uncovered. Check that limits still meet contract and lender requirements, and remember that a certificate of insurance is not coverage. If you are considering a new broker to run the search, see what a broker of record letter actually does.

Common questions

Does a nonrenewal mean we are uninsurable?

Usually not. It often reflects one carrier's appetite. Other carriers may view the same account differently.

How much notice is required in Georgia?

The state's business guide lists 75 days for workers' compensation and 45 days for other business property and liability insurance.

Will a nonrenewal raise our premium elsewhere?

It can, especially if losses drove it. A complete submission and a clear explanation of improvements give the best chance of competitive terms.

What clients can do

• Ask for the nonrenewal reason in writing.
• Check the notice date against the expiration date.
• Assemble loss runs, exposures and safety documentation in the first week.
• Compare any replacement quote line by line with the expiring policy.
• Request a coverage review to plan the replacement.

To talk through how this applies to your business, reach out to Tyler L. Gaynes.

This article offers general professional perspective and is not legal advice or a representation of coverage for any specific policy or circumstance.