by masapv » Tue Feb 23, 2010 07:22 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: Wed Feb 24, 2010 07:59 am Post Subject: Suing insurance agent
Is this grounds for sueing the insurance company and agent for a bait and switch?
You can sue a company for a bait and switch if they had made a false advertisement.
Post payment audits are used by insurance companies to extract money paid to the insured they feel they have improperly paid. You can certainly take some legal advice before you sue your insurance company.
Posted: Wed Feb 24, 2010 05:56 pm Post Subject: paper work
read your paper work.....read the policy.....and see....if their is a difference......most likely.....he covered... his.........behind.......he should have let you know about the audits............you maybe angry......and do change ....your...insurance ...... agent....he and the new owners are not looking out for yor best interest........go with an independent........he will have more choices.....
Posted: Wed Feb 24, 2010 07:56 pm Post Subject:
Post payment audits are used by insurance companies to extract money paid to the insured they feel they have improperly paid.
No, no, no, no, no...
Commercial General Liability (CGL) policy premiums, in part, are based on payroll. The greater the number of employees insured under the CGL means a greater exposure to the insurance company. All of your employees are considered insureds under the contract and the insurance company is within their rights to audit your payroll and commercial account for discrepancies. They are going to compare the payroll numbers they had on file when the policy was originally issued with the "Year-end" numbers of actual payroll paid. Since part of the premium is based on number of employees and payroll, the actual premium amount could change.
I have dealt with CGLs for more than 20 years, and premium changes upon audit are not uncommon in the least.
Can you sue your agent? This is America- you can sue almost anyone for almost anything!
InsTeacher 8)
Posted: Fri May 17, 2013 05:34 pm Post Subject: what if they quoted the wrong rates
What if the numbers to formulate a quote were correct and they applied the wrong rates to the numbers by which the decision to purchase the policy was made? At the year end audit they discover they erred and charge the client for their err. Does the insurance company have a right to do that if proper numbers supplied and agreed upon and the Insurance company made the mistake?
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