What can the insurer do after the first 60 days of a Business Automobile Policy?

After the first 60 days of a Business Automobile Policy, the insurer retains the right to cancel the policy for specific reasons. This capability is tied to the idea that insurers must provide a level of stability and guarantee for a certain period, allowing them to assess the risk and maintain continuity of coverage. After this initial duration, they have the authority to terminate the policy if they discover issues such as fraudulent activities, significant changes in risk, or non-payment of premiums.

This policy structure ensures that the insurer can manage risk effectively while giving policyholders a reasonable period in which their coverage is secure. Other actions, such as increasing premiums without notice or changing the deductible, are generally regulated by state insurance laws, which require notice for any changes affecting coverage terms or costs. Extending coverage automatically is typically not a standard practice and would usually require an endorsement or renewal agreement. Thus, the insurer's ability to cancel for specific reasons after 60 days is a crucial aspect of managing ongoing risk assessment in the policy lifecycle.