5 years of overpaying for business insurance until a single audit tipped me off

I run a small landscaping company in Phoenix and just got hit with a routine audit from my insurance carrier. The agent asked me if I had any employees using their own trucks. I said yeah, two guys drive their own pickups. He said oh, your policy doesn't cover that and you've been paying for a blanket commercial auto rider that doesn't even apply. I looked back at my old quotes and realized I had been buying the wrong type of liability coverage since 2019. Overpaid by about $200 a month easy. Has anyone else found a huge gap in their coverage just from a random audit?

2 comments

2 Comments

james_singh721d ago

Hit them with a demand for a refund on those premiums first thing... they'll usually fold if you've got the audit paperwork showing their error.

the_max21d ago

Yeah @james_singh7 is spot on with that. I did the same thing when my business insurance screwed up a claim because they'd listed the wrong coverage type for a whole year. Sent them a certified letter with the audit results and a demand for the full premium refund plus interest. Took about three weeks but they cut me a check for 4,500 bucks without even fighting it. These companies rely on people not checking the paperwork, so when you show you actually read it they tend to back down real quick.