Class Code Question for Building Owner

[iiinycboi]

I have a client asking me why my quote is 3x his quote from other agencies. And i asked him to let me see their quote because it shouldnt be that much of a difference.


the building is first floor restaurant 2nd floor apartment.

i used Restaurants- With No sale of alcoholic beverages- with Table Service 16900

i quoted 4xxx.xx

and he shows me the other quotation sheet and that agency quoted him for first floor bank or office class code 61217 and 2nd floor apartment

quoted 16xx.xx

am i using the wrong class code? wtf?

i lost alot of clients to this agency because hes always beating my price

 

[djs]

Well, what is the first floor actually used for?
There will always be agents who will misquote the use type to get a better rate to get the business. Usually not this drastically, but they will still do it.

You can easily explain the difference though. Much more risk in a restaurant than in just office space.

Dan

 

[iiinycboi]

first floor is a dine in restaurant and i explained to client but he say the other agent says hes quoting for a restaurant too, just having a hard time not bad mouthing someone else and explain that the risk description is not correct.

 

[djs]

Simple....
Show him the class codes on both quotes. Explain this is a large part of what determines the rates, use a couple of examples, such as nightclub risk vs a small office risk. Obviously the nightclub will pay more. Push the point that the insurance company may not pay for a loss if the class code is wrong and the loss was related to the usage.

Then show him a class code listing to show that you have him properly rated. He'll want to look at the class code for what the other quote is for. Let him. He'll see the light.

Dan

 

[Guest]

It sounds like you have the correct class. I know that some carriers will allow the policy to be written in a Store BOP policy over a Restaurant BOP if there is limited to no cooking, something like a deli. That would only change the price slightly though.

 

[iiinycboi]

i actually explained this to him and he states that the other insurance agent says thats why the restaurant has their own insurance. the restaurant insurance picks up the damages if its related to them. and if its not related to them his own insurance will pick up the damage.

i think my "client" likes the other agent better i cant seem to persuade him to my side without bad mouthing the other agent.

i currently insure the clients homes and rentals homes. i'm pretty sure if i lose this over price hes gonna switch everything to the other agent.

also wouldnt the yearly inspection for commercial buildings see that its not correctly classified??

 

[Soaringagent]

Please keep us updated...

 

[iiinycboi]

Well he went ahead and got the other agents policy with the wrong class code. We'll see if they pass inspection? sigh

 

[Guest]

That is crappy. You have done your job correctly and if the insured cant see that it's their loss.

 

[kuri3460]

i actually explained this to him and he states that the other insurance agent says thats why the restaurant has their own insurance. the restaurant insurance picks up the damages if its related to them. and if its not related to them his own insurance will pick up the damage.

i think my "client" likes the other agent better i cant seem to persuade him to my side without bad mouthing the other agent.

i currently insure the clients homes and rentals homes. i'm pretty sure if i lose this over price hes gonna switch everything to the other agent.

also wouldnt the yearly inspection for commercial buildings see that its not correctly classified??

Honestly, this might be a great example of something to walk away from - a current client who has no interest in your professional opinion and favors another one who's clearly doing something wrong. You're just going to waste a lot of time on this. Let him go to the competition and follow up next year.