DO YOU HAVE TO PAY DOWNPAYMENT EVERY YEAR TO RENEW COMMERCIAL LIABILITY INSURANCE. IF SO WHY? IF NOT WHY?
This is our second year with our construction business . last year when it be time to renew our liability insurance the broker snookered us into a 700.00 down payment because she said they weren't doing business with our insurer anymore, so we compensated and continued with monthly payments on time, very soon it's time to renew and they want another 600. IS this right? do i have to use a broker? please help !I don't hold that kind of money to give up inside the next 30 days like they want. also they give us no warning, they sent me a renewal email last week asking if anything have change ,and did we want to add or remove any coverage, i responded no to adjectives, and then i get this notification in the snail mail, describing me i owe if i want to continue coverage . i agree with still making monthly payments, but why another down reward when there are no changes to my policy?
Just so you understand, your policy is good for with the sole purpose one year and it is not a "continuous" policy like your auto or home (even then, come renewal time, you still may have need of to make a "down payment").
In order for the broker to renew your policy, a deposit is required (usually 25% down plus and fees, if applicable). Would you start work as a contractor lacking anything up front? This way it guarantees the carrier that you intend to renew your policy. How can you expect an insurance haulier to renew your policy without collecting any premium?
Perhaps there is a broker's levy included in the deposit. If so, your broker may be able to negotiate the broker allowance. Can't hurt to ask.
Good Luck!
EDIT:
Contrary to what the other poster said, you CAN make installment payments if the insurance carrier cannot do it themselves, and NO, your premiums don't enjoy to be over $25,000. You can get premium financing through one of the many nouns companies that either the agent, broker or wholesale broker uses. Some of the more familiar ones are Imperial Premium Finance, and Royal Premium Finance. Ask your broker. He should own access to at least one or two. Source(s): 30+ years in the insurance buisness
You don't have to use an agent or broker if you would prefer to treaty directly with the insurer. But if you are not an expert in insurance, I wouldn't recommend this. You can unquestionably switch brokers if you are unhappy with the current one.
If you are paying for insurance monthly, you will probably want to make a down payment. The insurance company wishes some of its money right away. The previous policy period is over, and the cycle starts again. Doesn't the construction business work the same style - wouldn't you want a down payment prior to my second job beside you?
"> Especially near construction, most insurance companies won't give you payments, unless your premiums are over $25,000 a year.
Unless you pay your premiums surrounded by full, you will have to pay AT LEAST 25% down.
I don't know of any insurance companies that will write construction relatein seventh heavens directly, without using a broker/agent.
The down payment, is because they inevitability to have enough "equity" surrounded by the policy. Many, many contractors pay the minimum down, bring back the certificates of insurance, and let the policy lapse. Keep within mind, most construction is seasonal, April to October or so, depending on where you're located - so many contractors would LOVE to not foot any insurance during the off season.
Sorry. This is more than fair.
And . . .it could acquire much, much worse - because if your old policy is just expiring, it will be audited soon. That mode, if you lowballed your payrolls or sales, OR, didn't collect certificates of insurance from your subs, you're going to capture a big fat bill for the additional premium for both final year's policy, AND the renewal policy. BUT, your broker should have explained that to you up front.
Related Questions:
Just so you understand, your policy is good for with the sole purpose one year and it is not a "continuous" policy like your auto or home (even then, come renewal time, you still may have need of to make a "down payment").
In order for the broker to renew your policy, a deposit is required (usually 25% down plus and fees, if applicable). Would you start work as a contractor lacking anything up front? This way it guarantees the carrier that you intend to renew your policy. How can you expect an insurance haulier to renew your policy without collecting any premium?
Perhaps there is a broker's levy included in the deposit. If so, your broker may be able to negotiate the broker allowance. Can't hurt to ask.
Good Luck!
EDIT:
Contrary to what the other poster said, you CAN make installment payments if the insurance carrier cannot do it themselves, and NO, your premiums don't enjoy to be over $25,000. You can get premium financing through one of the many nouns companies that either the agent, broker or wholesale broker uses. Some of the more familiar ones are Imperial Premium Finance, and Royal Premium Finance. Ask your broker. He should own access to at least one or two. Source(s): 30+ years in the insurance buisness
You don't have to use an agent or broker if you would prefer to treaty directly with the insurer. But if you are not an expert in insurance, I wouldn't recommend this. You can unquestionably switch brokers if you are unhappy with the current one.
If you are paying for insurance monthly, you will probably want to make a down payment. The insurance company wishes some of its money right away. The previous policy period is over, and the cycle starts again. Doesn't the construction business work the same style - wouldn't you want a down payment prior to my second job beside you?
"> Especially near construction, most insurance companies won't give you payments, unless your premiums are over $25,000 a year.
Unless you pay your premiums surrounded by full, you will have to pay AT LEAST 25% down.
I don't know of any insurance companies that will write construction relatein seventh heavens directly, without using a broker/agent.
The down payment, is because they inevitability to have enough "equity" surrounded by the policy. Many, many contractors pay the minimum down, bring back the certificates of insurance, and let the policy lapse. Keep within mind, most construction is seasonal, April to October or so, depending on where you're located - so many contractors would LOVE to not foot any insurance during the off season.
Sorry. This is more than fair.
And . . .it could acquire much, much worse - because if your old policy is just expiring, it will be audited soon. That mode, if you lowballed your payrolls or sales, OR, didn't collect certificates of insurance from your subs, you're going to capture a big fat bill for the additional premium for both final year's policy, AND the renewal policy. BUT, your broker should have explained that to you up front.
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