Okay, so you’re in a bit of a pickle. You just found out that your car insurance company…is no longer going to be your car insurance company. Maybe you’ve been nonrenewed or maybe you’ve been canceled. Either way, the bottom line is that you soon will be without insurance. But are nonrenewal and cancelation the same thing? Not exactly. We’ll explain why these two pickles are different and how you can react to each.
You walk into the office one morning and swipe the mail out of your mailbox. You flip through the envelopes. Bill, bill, bill – uh-oh. Insurance company? That can’t be good.
With a sense of dread, you inch into your office, shut the door, and slide open the envelope. You close one eye and open the letter. And it says…well, it’s complicated, but you think it says that your policy just got nonrenewed. What does that even mean? You squint at the letter and turn it upside-down, but can glean no more meaning from it. Great.
Okay, here’s a different scenario: Walk into the office, mailbox, open the letter. You slide open the letter and it says that your policy has been canceled.
Wait, isn’t that the same thing as the first scenario, where your policy was nonrenewed? Nope. Not the same. They might sound the same, and they might seem like they have the same outcome – you don’t have business insurance – but they’re actually two different things.
So, let’s take a look at what these two scenarios mean for your business.