Terms & Conditions

General

As is industry standard among all insurance carriers and in accordance with applicable laws and your policy, your Annual Premium is an estimate determined by the information provided to us, Berkshire Hathaway Direct Insurance Company, dba THREE (“THREE”), to date and the application of our manuals of rules, rates, rating plans and classifications. Your Annual Premium is subject to change after coverage has been bound. Please be aware that the information submitted to us by you is subject to verification via an annual audit in accordance with the terms of your policy. Also, additional charges may be applied in certain jurisdictions to address specific circumstances. If a check is returned due to insufficient funds, a fee of up to $20 will be assessed. Payments received after the due date may be subject to a late fee of up to $10 and policy cancellation. Please read your policy carefully. Coverage is only afforded by your policy and endorsements.

Personal information about you, including information from a credit or other investigative report, may be collected from persons other than you in connection with this application for insurance and subsequent amendments and renewals. Such information as well as other personal and privileged information collected by us or our agents may in certain circumstances be disclosed to third parties without your authorization. Credit scoring information may be used to help determine either your eligibility for insurance or the premium you will be charged. We may use a third party in connection with the development of your score. You may have the right to review your personal information in our files and request correction of any inaccuracies. You may also have the right to request in writing that we consider extraordinary life circumstances in connection with the development of your credit score. These rights may be limited in some states. Please contact us at 1-800-507-4495 to learn how these rights may apply in your state or for instructions on how to submit a request to us for a more detailed description of your rights and our practices regarding personal information. (not applicable in AZ, CA, DE, KS, MA, MN, ND, NY, VA, or WV.)

Payment

Recurring Automatic Bank Draft:

The Automatic Bank Draft may be offered to certain customers. If you select to enroll in Automatic Bank Draft, you must agree that the following Automatic Bank Draft terms apply. After enrolling in Automatic Bank Draft, we will automatically deduct payment when it is due. We will continue to send you Billing Statements as a courtesy, but cannot guarantee that you will receive any specific notice, or that notices will arrive prior to the date that the automatic draft is made. Enrollment in Automatic Bank Draft does not change your obligations to make payments under the policy terms. By enrolling in Automatic Bank Draft, you also agree that Automatic Bank Draft will renew automatically if you renew your policy. You may rescind Automatic Bank Draft at any time by emailing service@threeinsurance.com.

Auto-Pay Recurring Card Payment:

By enrolling in Auto-Pay by clicking the Purchase button on the payment page, you agree to allow THREE to automatically debit future insurance payments from your account. You also agree to allow your financial institution to debit your account for these payments, and you understand changes to your policy or premium may change the amount debited. You can discontinue automatic insurance payments at any time by calling us at 1-800-507-4495.

Nonpayment of Premium:

Any policy that we issue may be canceled or rescinded if we do not receive any premium installment, service fee, late payment fee, or reinstatement fee. A policy may be canceled “flat”, meaning that no policy contract was ever agreed between us, if we do not receive the initial premium payment. Otherwise a policy may be canceled for any remaining term and we will refund any premium that we may be holding for that term.

Refunds:

After policy cancellation, refunds for the reduced time of coverage will be made according to applicable law.

Coverages

Commercial Automobile Coverage:

Applicable in Arizona:

This policy provides Uninsured/Underinsured Motorists coverage at the Auto Liability Limit. Uninsured/Underinsured Motorist coverage will pay for your injuries caused by an uninsured/underinsured driver or a hit-and-run driver. You may request in writing before you purchase this policy to remove the Uninsured/Underinsured motorist coverage. This lower limit will reduce annual premium but by no more than 5.1% of the total. Agreeing to these terms & conditions without a request in writing is considered a rejection to remove the Uninsured/Underinsured Motorists Coverage.

Applicable in Connecticut:

This policy provides Uninsured/Underinsured Motorists coverage at the Auto Liability Limit. Uninsured/Underinsured Motorist coverage will pay for your injuries caused by an uninsured driver or a hit-and-run driver. This coverage includes underinsured motorist conversion coverage, which covers damages exceeding the at-fault driver’s limits. You may request in writing before you purchase this policy to lower this limit to the minimum limit required by the state. This lower limit will reduce annual premium but by no more than 5.7% of the total. Agreeing to these terms & conditions without a request in writing is considered a rejection to lower the Uninsured Motorists limit. You may also request your Uninsured/Underinsured Motorists coverage limit to be double your Auto Liability Limit or to reject Underinsured motorist conversion coverage; however, to determine the charge for this limit or to purchase such a policy you must call 1-800-507-4495.

Applicable in Illinois:

This policy provides Uninsured/Underinsured Motorists coverage at the Auto Liability Limit. Uninsured/Underinsured Motorist coverage will pay for your injuries caused by an uninsured driver or, in some states, a hit-and-run driver. You may request in writing before you purchase this policy to lower this limit to the minimum limit required by the state, or, in some states, to reject the coverage THREE. This lower limit will reduce annual premium but by no more than 1.8% of the total. Agreeing to these terms & conditions without a request in writing is considered a rejection to lower the Uninsured Motorists limit.

Applicable in Iowa:

This policy provides Uninsured/Underinsured Motorists coverage at the Auto Liability Limit. Uninsured/Underinsured Motorist coverage will pay for your injuries caused by an uninsured driver or, in some states, a hit-and-run driver. You may request in writing before you purchase this policy to lower this limit to the minimum limit required by the state, or, in some states, to reject the coverage entirely. This lower limit will reduce annual premium but by no more than 4% of the total. Agreeing to these terms & conditions without a request in writing is considered a rejection to lower the Uninsured Motorists limit.

Applicable in Pennsylvania:

This policy provides Uninsured and Underinsured Motorists coverage at the Auto Liability Limit. Uninsured and Underinsured Motorist coverage will pay for your injuries caused by an uninsured or underinsured driver or a hit-and-run driver. You may request in writing before you purchase this policy to lower the Uninsured motorist limit, change so that only one limit applies per accident, or reject Uninsured Motorist coverage. These reductions of coverage may reduce annual premium up to 2.9% of the total.

You may also request in writing before you purchase this policy to lower the Underinsured motorist limit, change so that only one limit applies per accident, or reject Underinsured Motorist coverage. These reductions of coverage may reduce annual premium up to 3.3% of the total. We assume that if you do not make a written request to change Uninsured or Underinsured Motorist coverage you agree to the original terms & conditions.

You have the right to choose a combined first party benefits limit, which combines Medical and Work Loss benefits into a single limit per insured per accident. This selection also includes a sublimit for funeral expense and accidental death and dismemberment. The limit can be up to $177,500 and costs up to $58 extra per vehicle.

Applicable in South Carolina:

This policy provides Uninsured/Underinsured Motorists coverage at the Auto Liability Limit. Uninsured/Underinsured Motorist coverage will pay for your injuries caused by an uninsured/underinsured driver or a hit-and-run driver. You may request in writing before you purchase this policy to lower the Uninsured motorist limit to the minimum limit required by the state. This lower limit will reduce annual premium but by no more than 3% of the total. You may also request in writing before you purchase this policy to remove Underinsured motorist coverage. Agreeing to these terms & conditions without a request in writing is considered a rejection to lower the Uninsured Motorists limit and remove the Underinsured Motorists Coverage.

Workers Compensation Coverage

Applicable in Illinois:

Your business can receive up to 2.4% on Workers Compensation insurance premium for selecting a $1,000 deductible. If you select this deductible, your business must reimburse the Company for the full amount of the deductible within 30 days of receipt of notice for each claim paid under that policy. Failure to remit payment within this time frame may result in CANCELLATION of the policy and possible loss of unearned premium. If interested please call 1-800-507-4495, otherwise agreeing to these terms & conditions is considered a rejection to select the deductible.

Applicable in South Carolina:

You have the right to reduce your Workers’ Compensation premium by selecting a small deductible and calling 1-800-507-4495. Agreeing to these terms & conditions is considered a rejection to select a deductible.

Applicable in Texas:

You have the right to reduce your Workers’ Compensation premium by selecting a small deductible and calling 1-800-507-4495. Agreeing to these terms & conditions is considered a rejection to select a deductible.

Limitation of Liability

THREE’s obligations under any insurance policy only arise after a policy is actually issued and the conditions of the policy are satisfied including the payment of the premium. THREE does not represent or warrant that the operation of its website will be error-free, uninterrupted, or free of defects. To the extent permissible by law, THREE will not be liable for any loss or damages of any kind arising from errors or delays in using its website or computer viruses or inability to use the website. THREE expressly disclaims any other representation or warranty with respect to its website.

Applicable in Arizona:

As described in Arizona revised statute 20-2104(d), a credit report or other investigative report about you may be requested in connection with this application for insurance. Any information which we have or may obtain about you or other individuals listed as policyholders on our policy will be treated confidentially. However, this information, as well as other personal or privileged information subsequently collected, may under certain circumstances, be disclosed without prior authorization to non-affiliated third parties. We may also share such information with affiliated companies for such purposes as claims handling, servicing, underwriting and insurance marketing. You have the right to see personal information collected about you, and you have the right to correct any information which may be wrong. Also, pursuant to Arizona revised statute 20-2104(c), if you are interested in obtaining a complete description of information practices, and your rights regarding information we collect, please write us at the address provided with your policy.

Applicable in California:

This authorization shall expire one year from the date you signed the authorization. For your protection California law requires the following to appear on this form: Any person who knowingly presents false or fraudulent information to obtain or amend insurance coverage or to make a claim for the payment of a loss is guilty of a crime and may be subject to fines and confinement in state prison.

Applicable in Florida and Oklahoma:

Any person who knowingly and with intent to injure, defraud, or deceive any insurer files a statement of claim or an application containing any false, incomplete, or misleading information is guilty of a felony (of the third degree)*.

Applicable in Oregon:

In connection with my application for insurance to the company shown above, I hereby authorized you to collect and disclose personal, privileged information, about me, by and to consumer reporting agencies, your authorized representatives, assignees, agents and affiliates. The information collected and disclosed extends to my credit standing, credit worthiness, credit capacity, personal characteristics and mode of living. I understand that credit scoring information may be used to either determine my eligibility for insurance or the premium I will be charged. Credit scoring cannot be used for renewals unless requested by the insured. I understand that I am entitled to receive a copy of this authorization and, upon request, a record of any subsequent disclosures of personal or privileged information that must include the name, mailing address ad institutional affiliation of the party to which the information was disclosed as well as the date of the disclosure, and to the extent practicable, a description of the information being disclosed.

Any person who knowingly and with intent to defraud or solicit another to defraud the insurer by submitting an application containing a false statement as to any material fact may be violating state law.

Applicable in Utah:

Any person who knowingly presents false or fraudulent underwriting information, files or causes to be filed a false or fraudulent claim for disability compensation or medical benefits, or submits a false or fraudulent report or billing for health care fees or other professional services is guilty of a crime and may be subject to fines and confinement in state prison.