Published June 10, 2026 · Last updated June 10, 2026
Your policy was non-renewed in California: what happens now
California law gives most commercial policyholders real protection after a non-renewal: 60 to 120 days' advance written notice with reasons, automatic 60-day continuation if the notice is late, and loss runs within 10 business days of a written request. The law buys you time — what you do with that time decides how the story ends.
Every rule on this page is linked to the statute it comes from, because non-renewal advice is full of folklore and the actual code sections are short and readable. Two cautions before the details: these rules cover most standard commercial property and liability policies — workers' compensation and surplus lines run on different rules — and this is general information, not legal advice.
How much notice must a California carrier give before non-renewing a commercial policy?
For most commercial property and liability policies, California Insurance Code section 678.1 requires written notice of non-renewal, with reasons, at least 60 days and not more than 120 days before the policy period ends. The same notice applies to conditional renewals that cut limits, drop coverages, raise deductibles, or raise the rate more than 25 percent.
Statute: Insurance Code § 678.1. Notice goes to both the named insured and the producer of record, at the mailing addresses on the policy.
What happens if the carrier’s non-renewal notice is late?
The statute has teeth: if the insurer fails to give timely notice under section 678.1, the policy continues with no change in its terms or conditions for 60 days after the notice is finally given. That continuation is automatic under subdivision (d) — it exists precisely to protect businesses from being left without time to replace coverage.
Can a carrier cancel my policy mid-term instead?
Only on specific statutory grounds. After 60 days in force, Insurance Code section 676.2 limits mid-term cancellation to enumerated reasons — nonpayment, fraud or material misrepresentation, judgments or acts materially increasing the risk, failed loss-control requirements, and certain Commissioner determinations — with at least 30 days’ written notice, shortened to 10 days for nonpayment or fraud.
Statutes: § 677.2 (notice periods) and § 676.2 (permissible grounds). Mid-term rate increases and coverage reductions are similarly restricted.
Am I entitled to my loss runs after a non-renewal?
Yes. California Insurance Code section 679.7 requires the carrier, on written request after a cancellation or non-renewal (or within 60 days before renewal), to provide a premium and loss history report within 10 business days — covering your tenure or the last three years, whichever is shorter, plus the current period. A parallel rule, section 11663.5, covers workers’ compensation.
Statute: § 679.7. Our loss runs guide includes a copy-paste request letter.
Do these protections apply to surplus lines (E&S) policies?
No — and this surprises many buyers. Section 675.5 expressly excludes surplus line insurance from the commercial policies these notice rules govern, so a non-admitted carrier is not bound by the 60-day non-renewal or statutory cancellation framework. If your coverage is already in the E&S market, calendar your own renewal runway instead of relying on statutory notice.
How does a broker actually remarket a non-renewed risk?
In sequence: request loss runs immediately, build a complete submission — operations, payroll or revenue, controls, and a plain narrative of what drove the non-renewal and what changed — then approach the markets actually writing the class, including specialty and surplus lines markets. Underwriters price uncertainty against you; a complete, honest file is the lever.
That market — the one that writes risks standard carriers shed — is explained in what "hard to place" really means. It's where most non-renewed accounts land for a year or two on their way back to standard pricing.
The week-one checklist after a non-renewal notice
- Read the notice: confirm the date, the reasons given, and whether it is a true non-renewal or a conditional renewal offer.
- Request loss runs in writing the same day (§ 679.7 starts a 10-business-day clock).
- Calendar the x-date and work backwards — markets quote difficult accounts in weeks, not days.
- Gather the submission basics: operations description, payroll or revenue, claims narrative with what changed.
- Engage a broker who works non-renewed accounts — and do not let the expiration date pass without bound replacement coverage.
Niche-specific versions: tree care · bars & restaurants. Related: Loss runs explained.