by Guest » Tue Feb 23, 2010 07:21 pm
I have a small business.
When we started two years ago,we had an insurance agent come out and give us a quote for liabilty insurance (contractors policy). There are two owners in this business and that agent met with both of us. He quoted us a great price and we went with it.
A year later, the insurance company did an audit and "found out" that there were two owners (there has always been two owners, the agent met with us both). We get a bill a few months later for THOUSANDS of dollars in back pay.
The agent sold his business to someone and I spoke and complained to the new agent. They ended up waiving the back pay, however, now I owe $1289 for last year for the two owners.
I have been paying my monthly payment to them and now they want to charge me for the back pay from last year! Why didn't they tell me about this increase after the audit? Why am I going to have to pay for something I DIDN'T KNOW about?
Is this grounds for sueing the insurance company and agent for a bait and switch? Quoting a low price and then a few years later I get the REAL price?
Any help would be great (I live in California by the way)
When we started two years ago,we had an insurance agent come out and give us a quote for liabilty insurance (contractors policy). There are two owners in this business and that agent met with both of us. He quoted us a great price and we went with it.
A year later, the insurance company did an audit and "found out" that there were two owners (there has always been two owners, the agent met with us both). We get a bill a few months later for THOUSANDS of dollars in back pay.
The agent sold his business to someone and I spoke and complained to the new agent. They ended up waiving the back pay, however, now I owe $1289 for last year for the two owners.
I have been paying my monthly payment to them and now they want to charge me for the back pay from last year! Why didn't they tell me about this increase after the audit? Why am I going to have to pay for something I DIDN'T KNOW about?
Is this grounds for sueing the insurance company and agent for a bait and switch? Quoting a low price and then a few years later I get the REAL price?
Any help would be great (I live in California by the way)
Posted: Fri Mar 05, 2010 01:58 pm Post Subject:
Insurance agencies have their own insurance policy called Errors an Ommissions. If a company has misrepresented a policy or written it incorrectly that clearly falls under the errors and ommissions policy. I would first suggest that contact the insurance company and ask what if anything they are willing to do about the bill because the additional premium was due to an error on their part. If they do nothing, you can contact the insurance commissioners office and ask for a recommendation to help resolve the issue or you sue the agency under their errors and ommissions policy to get the additional amount paid for. Lastly, learn from the error, check and double check ask questions and take notes regarding the replacement policy. Be your own advocate.
Posted: Sat Mar 06, 2010 12:15 am Post Subject:
Dear Guest- this is a duplicate thread and your post has been answered in the original post that you made a short while ago.
This is generally NOT grounds for any type of lawsuit...errors and omissions will not have anything to do with this either.
Please read my response in your original post by clicking here:
http://www.ampminsure.org/start/about11984.html
InsTeacher 8)
Posted: Sat Mar 06, 2010 12:19 am Post Subject:
MiAlterEgo4Now- I'm sorry, but your post is incorrect. This is a CGL contract which is subject to end-of-policy period audit and potential premium changes.
Chances are that there are not errors in this contract based on your assertions and is not subject to an E&O claim unless there's a true error and omission involved and there isn't one here from what I can determine.
InsTeacher 8)
Posted: Sat Mar 06, 2010 01:05 pm Post Subject:
per Ins. teacher this is a duplicate thread, therefore I am locking this one..
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