Nothing could be worse after an accident than learning that you had no insurance coverage. Your insurer could claim that you did not properly renew your policy, or that your policy was canceled. In such cases, it is critical to investigate the details of the non-renewal or the cancellation. Insurers are obligated to give proper notice under New Jersey law, and if the policy was not correctly canceled, then there should be coverage. Failing that, drivers with little or no assets in case of a significant claim can consider filing for bankruptcy.
If you are sued for negligence in connection with a crash, if the insurer denies coverage, we would normally file an answer on your behalf, to include a third party complaint against your insurer for a declaratory judgment that there should be coverage.
Insurers can often rely on some odd policy provisions in making their decision. In a recent case, our client requested a defense by his own personal auto insurer for an accident involving major personal injuries suffered by another driver while our client was operating a rental van. The insurer claimed that the policy precluded coverage because of a partition between the cab and cargo area. I inspected a similar vehicle and discovered that the policy exclusion did not apply. We then filed a third party complaint for coverage against our client’s auto insurance carrier, which resulted in the carrier providing coverage and paying out the policy limit to the other driver.
Coverage is important because otherwise you will incur the cost of defending the case, as well as having liability to the other driver for her injuries. That is why you buy insurance.
Truck insurance claims can be tricky, particularly when a driver or vehicle is not listed on the policy and therefore coverage is denied. This situation must be carefully investigated. In many cases, the insurance broker arranging the insurance policy may have been negligent in failing to provide proper and complete information to the insurer, or the insurer simply failed to include the driver or vehicle. It is crucial for our trucking company clients to check the policy (typically hundreds of pages) promptly upon receipt to ensure that all drivers and vehicles have been listed. It may be necessary to file a third party complaint along with the answer to the personal injury complaint, seeking coverage from the insurer and/or asserting the negligence of the insurance broker. Typically such brokers have errors and omissions insurance which may provide a defense and indemnification to the trucking company.
As a New Jersey litigation attorney, I have considerable experience in all of the above described cases, as well as many other similar situations. Please call me today for a free initial consultation.
