Re: Gota love your insurance guy.... unless

["J Barnes" <trishnjames@xxxxxxxxxxx>]

Your right Norm,  today I found out my agent represents the contractor.  The
contractor had himself added as well as the owner of the building they are
building.  I dont mind paying for additional insured, thats not the issue.
The issue is my agent allowed someone else to add coverage to my policy.

We cant always refuse to add the additional insured if we want the job.  I
dont fully understand what additional insured is or what my options are when
obtaining this.  I guess its time to get some legal advice.

I will be finding a new broker in the very near future though.
James


<2alarm@xxxxxxxxxxxxx> wrote in message
news:jPVPf.810$96.494@xxxxxxxxxxxxxxxxxxxxxxxxx
> Chances are, that your agent is also the agent for the
> builder or general contractor and he wants to"spread the wealth"
> as you might say, by adding the builder as an additional insured
> on your policy, there-by reducing the premiums for the
> builder or general contractor, who has a much bigger exposure than you.
>
> In effect you're covering the builder or general contractor
> under your policy's "Joint and Several Liability" clause.
> Which means you are allowing the builder or general contractor to
> collect full coverage of a claim, even though you may only be
> responsible for 5 or 10 percent of the damage.
>
> As an example, the house you are working on catches fire.
> It cannot be determined who is responsible. But, the builder
> has been assigned "additional insured" on all the individual
> sub-contractors policies. He then makes a claim to all of the
> policies. 10 different claims, 10 different sub-contractors, each
> payout 10 percent of the entire claim. Your portion of the
> building according to your bid was 1% of the total cost of the house.
> Let's say a million dollar home. Your insurance carrier would have
> to pay $100,000.00. Not what you expected, but it is reality.
> It's a win-win situation for the builder and his insurance carrier.
>
> And then to top it off...your carrier dumps you.
>
> I'd find a new agent who carries the same insurance company.
> I'd also notify the Insurance Commissioner in your state.
> It sounds Bass to me----- I mean fradulent to me.
>
> Norm Mugford
>
>
>
>
>
>
>
>
>
> "J Barnes" <trishnjames@xxxxxxxxxxx> wrote in message
> news:rNidndeKRYdiL5LZ4p2dnA@xxxxxxxxxxxxxx
>> My insurance guy called today it went something like this.
>>
>> GUY: Hi we need you to pay for an Additional Insured request or we will
>> terminate your coverage.
>>
>> ME:   What Additional Insured Request
>>
>> GUY: The one for "XYZ customer" you ordered back in August
>>
>> ME: I didnt order anything for "XYZ customer" in August or ever, by the
>> way who is this "XYZ customer"
>>
>> GUY: I have the notes right here "ABC contractor" orderd the additional
>> insured for "XYZ customer" to be added to your companies policy
>>
>> ME:  So you just added it,  without calling me or getting authurization?
>>
>> GUY: Well it was required by "ABC contractor"
>>
>> ME: Then why didnt "ABC contractor" let me know I needed to order this?
>> And why didnt you bill me back in August?
>>
>> GUY: Not Sure Ill Call you back
>>
>> Guy Calls Back:
>>
>> GUY:  I called "ABC contractor" he said you have a construction contract
>> you signed that requires the additional insurance.
>>
>> ME: Fine.... but why do you add this to my policy without my approval or
>> knowledge?
>>
>> GUY: You needed it and so you should just pay for it if you dont want
>> your insurance coverage to cancel.
>>
>> ME:  Why dont you pay for it you added it without my approval.
>>
>> GUY:  I am not going to pay for this.....you need to its onlly 125$ and
>> if you dont your insurance will cancel today.
>>
>> ME:  Ok,  I guess I have no choice come by and pick up a check.  And in
>> the future dont add anything to my insurance without my knowledge or
>> signature.
>>
>> Guy: click
>>
>> This is a scaled down version of my phone call but you all should get the
>> idea.  I am not sure what this guy was thinking but I dont think he
>> should be able to get away with this.  Is this even legal?  I guess ill
>> be shopping for a new insurance Guy.
>>
>> James
>>
>>
>
>