Insurance Audit

[rskybiz]

I've never had to go through this before.:what: And I don't realy get the jist of it Any one been through one and what is the reason? I am puzzled in the sense that it is more asking me for dollar info vs. safety related info. Any thoughts appreciated

 

[NeTree]

No real secret... they want to make sure they're collecting the most premium dollar they can.

 

[sotc]

Basicly they want to make sure you didn't tell them you only do 100k worth of work a year when you actually do 250k. The more work you do, the more exposure they have, the more they charge you

 

[rskybiz]

I think they get that for sure, I was hoping it might be something to help it go down

 

[sotc]

If you do alot less that you estimated, it should

 

[SkwerI]

For business liability insurance? When I was with my previous agent I got them every year. It was just a phone call with a very nice woman who asked me some basic financial info. I kept it simple and downplayed my income (since I wasn't making much anyway) and made sure that the numbers I gave her equaled out to $17,600 per year or less. That's the minimum for a sole proprietor (here in Florida anyway). If I generated more than that then they could adjust my liability premium upwards. But since I was a subcontract climber I didn't have to report the entire job cost, just what I was paid.


I'm trying to give you some hints so you can give the correct answers and keep them logical and believable.

 

[rskybiz]

If you do alot less that you estimated, it should

Been far less this year, so that is cool, thanks for the info

 

[rskybiz]

skwerl I'll keep that # sacred and thanks

 

[MasterBlaster]

The bastids!

 

[rskybiz]

Ahh yes you can say that again bastids at that!

 

[sotc]

Subtle

 

[MasterBlaster]

Yea, that's me.

 

[sotc]

I meant Brian but yeah, you too

 

[MooseHunter113]

I have had 2 audits for workmans comp not much to it. Hopefully yours goes well good luck! Just don't call em bastids to their face

 

[rskybiz]

The workers comp audits I have done before, and I'll be nice knowing I may keep more of my hard earned money.

 

[MasterBlaster]

Haha @ Willie~!

 

[gf beranek]

To run a tree business insurance is only one of the many necessary evils we are forced to live with. You got to have it. And whether or not you make a claim the premiums are raised every year. That and the other bureaucracy hurdles you have to deal with is the reason I never started a business for myself. Much easier for me to just go home at the end of the day and not deal with the business headaches.

 

[squisher]

My premium has never raised and I've raised my gross every year. Claim free offsets the increase in sales.

 

[gf beranek]

Wow! Better stick with that one. Being Canuck can have something to do with it though. Overall I think you guys have the business end of things more in your favor than us blokes down her. Just my feeling about it. And more power to ya too.

 

[SouthSoundTree]

My GL is audited yearly. They base my actual premium on...get this...employee payroll, not revenue. I was wondering if I didn't have any employees what they'd base it on.

My WC goes goes down for no accidents.

 

[SkwerI]

That's correct on the payroll thing, I had forgotten. But seeing as I'm a sole proprietor with no employees it ended up being based on my net income (which would be my payroll, in a sense).

 

[SouthSoundTree]

It just doesn't make sense to me that they base it on payroll and nothing about revenue. If you are geared up and have a crane and subcontract all the clean-up, you could do large amounts of work/ exposure, and have minimal payroll.

They just want my payroll, not my payroll and my SPship net income (which would be my part of the payroll).

I'm okay with it, as I will plan to invest in labor saving equipment (aka payroll saving equipment), as I can afford it.

 

[Newfie]

My GL is audited yearly. They base my actual premium on...get this...employee payroll, not revenue. I was wondering if I didn't have any employees what they'd base it on.

Basing GL premium on payroll is a common method. For payroll purposes your salary is used as well, not just "employees"

 

[SouthSoundTree]

Its possible that my bookkeeper sends my net income to them as well.

Seems like a method to assess premiums, even if common as you say, which I'm not doubting. I know little about the insurance, except how to read how much to pay.

I know even less about how a good way to assess risk exposure would be.

I know that my commercial auto with collision for '90 F600 chip truck and '97 1/2 ton p/u is twice as much as my GL. Like they say, driving to/ from work is the most dangerous part of the day.

 

[sotc]

Basing GL premium on payroll is a common method. For payroll purposes your salary is used as well, not just "employees"

Part of the reason my salary is so low. Kinda interesting that the company rents the equipment from me though