Anybody ever been audited by their insurance co?

[KevinL]

Who do you have your liability insurance with?

 

[Rex Tyus]

Yes. Auto Owners. They wanted to verify payroll met with stated amount.

 

[Scott Rogers]

StateFarm, they audit every year.

 

[-JB-]

Regularly. No biggie.

 

[encapman]

It's a yearly occurrence. The greedy chumps want to make sure they're extracting enough blood.

 

[Fon Johnson]

Yes. They just want to verify your income and payroll. If they did not do this once in a while, the crooked guys would claim to have made nothing. Your premium is based on what you make, or your payroll, so they have to verify it.

Like everyone said.. No big deal. Just don't lie.

 

[TimP]

I'm with Auto Owners and they are coming this afternoon for their audit. Everything is in order and on the desk for them at the shop. I told the lady have fun nobody will be over your shoulder, yesterday, on the phone when I gave her directions.

 

[Out of Character - 0]

We use The Hartford, every year our payroll is 2 or 3 times the year before. When they do the yearly audit the send us a large bill to adjust for current and future coverage.

 

[Desk Jockey]

Every year, they want to make sure they get all that is due them. Greedy bass-turds!

 

[J Scott W]

Had Erie insurance. Annual audits for workers comp and liability.

Keep good records, show 'em the books. They leave in a couple of hours. Sometimes we paid a little more. Some years we got a refund. Just a cost of doing business.

Scott Warrington

 

[Lee Stockwell]

An every year thing for us too.

This can really affect your "breakeven point" on some labor-intensive projects.

Newbies often overlook unemployment ins too. Their version of an "audit" is an after-the-fact rate increase.

 

[TimP]

Well the person came spent 1 minute looked at our pay roll and left. That was it, our payroll was in line with our expected when we started out so nothing changed.

 

[Scott Rogers]

It is just another insurance scam. The audit you and raise your rate.

They should base your rate on your claims history and not how much you make. Why should the same coverage cost be different because you make more money? Their liability remains the same.

F*en Crooks.

 

[Fon Johnson]

Scott, which company is more likely to have an accident leading to a claim, one with $10,000 in payroll with a part time guy, or one with 10 employees and a payroll of $200,000? That is why it cost more. I sure don't agree with the amount, but the more employees you have and the more employee hours, the greater the chances of an accident.

 

[prodrying]

Every year they come and every time they show up it just makes me mad, because I know that all the profit will go to them. Makes me mad just thinking about it.

 

[Scott Rogers]

Scott, which company is more likely to have an accident leading to a claim, one with $10,000 in payroll with a part time guy, or one with 10 employees and a payroll of $200,000? That is why it cost more. I sure don't agree with the amount, but the more employees you have and the more employee hours, the greater the chances of an accident.

Fon, If you have years of claim free operation you should not be charged more because you make more. The maximum liability is the same weather it be one employee or 10 employees. no claim no increase. get claims increase the rate.

If you have 1 employee and 1 mil policy and he burns down a house the only will pay up to 1 mil.

If I have 10 employees and they all burn down houses the still will only pay 1 mil.

 

[Fon Johnson]

Right, but the way they see it (and I know from experience) is that the more employees you have, the greater the chance that something will happen. I agree that is is not fair that despite the fact you have a clean record they still charge out the wazoo. The simple fact of the matter is that they want to make money.. as much of is as they can! LOL

Insurance.. the one thing you buy and hope you never have to use.

 

[TimP]

The way I see it a carpet company with 10 employees VS a company with 1-2 employees. There is a significant difference in exposed liability and that's the way they see it too. However if you make more money doing less jobs than someone else and charge more you shouldn't pay more there would be less liability.

 

[Rex Tyus]

If I have 10 employees and they all burn down houses the still will only pay 1 mil.

It depends on the policy. Liability policies tend to be each occurrence however. Meaning 10 times the exposure with 10 employees.

 

[TimP]

I think you're on the right track there Rex. If you had 10 on one job and they all screwed up that's one thing. But 10 employees all screwing up 10 jobs each job has to pay out up to 1 mill, and that's how I understand insurance working (by occurrence). Talk about liability 10 mill worth vs 1 mil. Think about it.

 

[clean one]

Yes it's a yearly thing, have gotten some money back too