PDA

View Full Version : Liability Insurance Audit?


musician/lawnman
07-07-2008, 09:06 PM
So It's been over a year since I started the company & I get a letter from my liability carrier stating I have to have an audit done to adjust my rates. I need to call to confirm the appointment for it (I did I have to do it on thursday) They are playing it off as routine & something that happens to every business annually. I haven't heard of it or seen anyone talk about these yet so I figured I'd ask. Has this happened to you? Seems I am required to produce finacial records accross the spectrum for everything recievable, payable, payroll etc.
Is this normal guys?

Little's
07-07-2008, 09:36 PM
I havent heard of this, but I am sure it happens every once in a while. I would imagine they will do their best to find a way to raise your rates. Good luck with it.

musician/lawnman
07-07-2008, 09:43 PM
Thanks, yeah I think I'm gonna need it. I'm sure I'll end up owing some insane amount I wasn't counting on having to pay up. I'll keep ya posted.
Any onther responses are appreciated too.

Little's
07-07-2008, 09:59 PM
One more thing. When I got my insurance about a week after I signed with my broker, I got a call from a rep. at the ins. company. She asked me all sorts of info about the types of work, etc. etc.. Pretty in depth. I think she was searching for a reason to raise it a bit. I had already asked the usual from the broker, and made sure that all my answers were the same as what I gave him. I had never had a co. do this before. Not sure what the deal was.

musician/lawnman
07-07-2008, 10:20 PM
Yeah they did that to me too.
Are you doing pressure washing? No
Are you applying pesticides? No
Will you be removing trees? no
on & on & on....
I don't think that's too unusual

Steve
07-08-2008, 04:11 AM
Isn't it an amazing business? Like they can play it off by saying different activities can potentially open them to great liability, but it's the biggest scam in the world on how it is handled.

It's no wonder so often I read articles about roofing companies who claim to have 30 employees with 29 of them categorized as office workers! They don't want to pay the higher insurance rates for roofers.

I remember one time in a business class, we had this guest speaker who ran a manufacturing business and here he was telling us how he kept two sets of books. One for him and the other for the insurance company because they charged him based on the number of units he manufactured. He felt it was extortion and therefore was proud of what he did to circumvent them. WOW!

Why don't the insurance companies charge us more based on how many miles we drive too! The more we drive the better chance there is of an accident. The list could go on and on.

Keep us posted on how all this goes Chuck.

musician/lawnman
07-08-2008, 06:48 AM
Liability insurance for roofers is 100% So I don't blame the companies.
If you have a roofer that makes say $600 a week, the liability for him is $600 /wk Then you add taxes, unemployment ins. fica, futa, suta.... Who the hell can afford all that. That's why a $4000 roof costs $8,000.

UniversityLandscapers
07-08-2008, 08:07 PM
Wow...that's ridiculous. Insurance up here is a little more slack (still expensive) but it's waaaaay more difficult to get sued in the Canadian legal system.

I remember our fraternity insurance clerk telling us once that we got a discount on our chapter's insurance premiums just for living in Canada. lol

justin_time
07-08-2008, 09:19 PM
Just my curiosity, this is my first year with Liability insurance and I am paying 750$ for the year. I chose to do 3 different payments which is alright so far.

I haven't had a question after I had mine. I can also collect Airmiles with my insurance. :D

VPS Lawn Care
07-08-2008, 10:49 PM
Why don't the insurance companies charge us more based on how many miles we drive too! The more we drive the better chance there is of an accident. The list could go on and on.

Keep us posted on how all this goes Chuck.

Well Steve, Insurance co. do really charge us for how many miles we drive. If you can remember, they always ask you when you get your auto ins. what the vechl. will be used for, aprox how many miles you drive each day, to work, school,casual use. They always ask these questions when you get auto ins, and your answers affect the price you pay. It is one large legal numbers scam.

Steve
07-09-2008, 05:35 AM
Thats true, I didn't even think of it :rolleyes:

UniversityLandscapers
07-09-2008, 06:38 PM
We get our car insurance from the government...lol. It doesn't matter how far you drive, etc. it's just based on what category you fall into. Commercial, driving to/from work, or just personal use.