Maitland Brothers, a subcontractor, had its insurance policy canceled without proper notice. The court ruled that when a prime contract requires 30 days' notice before cancellation, that requirement flows down to the insurance company even if the policy itself doesn't explicitly state it. The Fifth Circuit reversed the lower court's decision and held the insurance company liable for failing to provide the required notice before canceling the subcontractor's coverage.
Always review your prime contract's insurance requirements—they can legally bind your insurance company even if not mentioned in the policy itself
Require your insurance broker to confirm in writing that all notice periods and cancellation terms from your prime contract are incorporated into your actual policy
If your prime contract requires 30+ days' notice before cancellation, document this requirement and share it with your insurer to prevent surprise policy terminations