Most of my business is Commercial Lines. The Insurance Companies I deal with will bill for down payments. Recently I experienced two clients who gave me the go ahead to issue the policy, requested a certificate of insurance (one for a franchisor and one for a vendor) and then never paid their first bill and are being cancelled for non-payment. I have two issues. First, I would like to know if there is any way to avoid this situation without the inconvenience of having to pick up a down payment from each and every client. Secondly, I would love to inform the certificate holders that the insurance is no longer in force, but I have read that since the certificate is between the insurance co. and the certificate holder this is a big E and O risk. Any thoughts or suggestions would be appreciated!
Do You Ever Sign Up a Commercial Lines Client and Give them a Certificate and They Do Not Pay Their
- Thread starter Nanci
- Start date
-
- Tags
- commercial lines
- Thread starter
- #3
Yes, I figured I would hear this response. The thing is I really feel the time saving benefit of letting the insurance company bill for the down payment outweighs the inconvenience of a few clients not paying. What I do think I will do in the future, though, is if I sense the person is only getting insurance for the certificate I will ask them to pay up front.
I use to have an environmental consulting/engineering business. A few years ago the business was basically closed when an old industrial client contacted me to do some sampling for them. This work was worth about $20,000 for a few hours of time over a six (6) week period. I had to come up with a liability policy for this work. I paid the premium up from and then canceled when the job was over. However, in the scenario you described I could have taken the coverage, dragged my feet on paying the premium and would have had the job finished by the time the cancelation notice hit my clients corporate office in another city.
- Thread starter
- #6
I am more than happy to do this. Does everyone agree I am not taking an E and O risk if I do?
- 620
Lot of the preferred carriers will bill them. YOu can always get the down payment up front. We always collect 25% up front and send the money in.
- 1,076
Are you afraid to ask for money? Most clients expect to make a deposit payment when binding, why would you rely on the company to bill as even if they do pay, it delays your commission by 30 days or more. Get a check or CC when binding, it actually gives the customer piece of mind.
- 620
I have to agree with Bert. I used to have clients ask me so many times " are you sure you don't need money? or "are you sure I have insurance, I didn't pay anything"
Most of these carriers wont send you commissions unless they get 24-30% of the premium for the client. THat could take up to 3 months.
Most of these carriers wont send you commissions unless they get 24-30% of the premium for the client. THat could take up to 3 months.
Similar threads
