“Time On Risk” is the period from which you last made your monthly payment, or your official renewal date in the case of a yearly payment plan, up to the point when you are officially cancelled. Under the premise of the customer wanting to be insured and promising to make payment, they are obliged to pay the cost of that time period since they were technically covered by the insurance policy.
Three Consequences Of Being Cancelled For Non-Payment
- It goes on your insurance history, which is shared with all insurance companies
- No insurance company will provide you with insurance if there are outstanding premium balances, including money owed for time on risk.
- It may be impossible to get a payment plan and you will be forced to pay your premium up front and in full.
So how do we advise to our customers when it comes to avoiding time on risk charges and being cancelled for non-payment?
- We ask that you always keep your contact information updated, so you can always be reached. It’s why we ask our clients about it every time we speak to them, but also advise them to inform us of any change of address or phone number when they occur.
- We request any cancellation of a policy to be done in writing, be it electronic or otherwise. Though we do record our phone calls as part of our committment to providing better service, having a written record will verify authenticity and it can be kept on our files for future reference.
- We suggest that you contact us immediately if there are payment issues. We’re not always able to prevent subsequent actions by the insurance company but we’ll certainly do our best to help customers avoid unnecessary fees and compounding problems.
Left unresolved, failure to pay an insurance premium becomes a big problem and it’s better to work out some terms or settle the payment delinquency with the insurer before it gets to the cancellation stage. We are committed to working diligently on behalf of our clients to represent them within the insurance industry.