Class Code Question for Building Owner

[djs]

I've had a few similar situations this year. Most of the time, the client is pretty tapped out, saving a few $$$ a month means more to them than being covered correctly. Don't take it personal, they would drop the coverage if they could most of the time.

Stay in touch with them and requote it next year. Hopefully, things will be better.

Dan

 

[joshb]

Keep doing the right thing. Eventually those people will come back to you after inspections, claim denied etc. We see the same thing with Homeowners in Florida everyday of the week. We lose A LOT to one particular agency in the area, we get about 50% back after their premiums are increased midterm.

 

[iiinycboi]

yeah, i will continue doing what i do. Just sucks that i am losing due to pricing for the wrong class code.

 

[djs]

Yep... Those are tough, tough, tough losses. Especially if your premium for a properly written policy is competitive.

Dan

 

[Scottyj]

I've had a few similar situations this year. Most of the time, the client is pretty tapped out, saving a few $$$ a month means more to them than being covered correctly. Don't take it personal, they would drop the coverage if they could most of the time.

Stay in touch with them and requote it next year. Hopefully, things will be better.

Dan

+ 1 I run into this all the time, where Im at it is the social norm to be frugal or cheap and if that means being ok with dishonesty to save a few $ then they will choose dishonesty every time, unfortunately it will take several or one big claim to be denied and them paying out the ears to cover it themselves for them to see the light. However dont fret they will remember you were the honest one and eventually hear you out next time, Just picked up a client the other week... similar story i was coding them right and the agent I was competing with was not,... Keep in regular contact you will get em!

 

[gambrinus]

Keep on doing the right thing. The last two BOPs I wrote this week were previously so screwed up with the classifications that if it weren't so serious of a situation, it would have been funny. Do the right thing, attract the GOOD business and keep your E&O losses to a minimum.

 

[jtm1240]

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.

_________________________________________________

It is not the fault of the other agent and you can't blame the insured for going with the policy that is less expensive as it will not effect the coverage.

IT IS THE FAULT OF WHAT OUR PROFESSION HAS DIGRESSED TO.

All small and medium size risks are slot rated and nothing is actually underwritten. Until, and maybe it won't happen, companies start loosing money with this system it will continue.

It is not good, but it is what it is and agents need to learn how to deal with it.

Jtm1240

 

[Scottyj]

_________________________________________________

It is not the fault of the other agent and you can't blame the insured for going with the policy that is less expensive as it will not effect the coverage.

IT IS THE FAULT OF WHAT OUR PROFESSION HAS DIGRESSED TO.

All small and medium size risks are slot rated and nothing is actually underwritten. Until, and maybe it won't happen, companies start loosing money with this system it will continue.

It is not good, but it is what it is and agents need to learn how to deal with it.

Jtm1240

Are you suggesting we be dishonest as well... or are you saying get over it...

I actually know of a local competator who slot rates everything and just counts on year 2 and 3 when the risk is audited and premiums are adjusted for the client to see what they should have been paying all along. The problem in that is for instance if you rate an excavator as say a landscape gardener there is a large chance any claims the client has under its products and clompleted ops will not be covered...

I say if you are competing against this situation you really need to drill it hard.

In a recent experiance I had I pointed out that the competing quote was coded wrong and that they were putting their company at risks by going this route to save a buck, I then asked them where the bathroom was... went to it grabbed a peice of toilet paper walked back into their office and wrote the word Insurance on it and asked for the same amount the competeing agent quoted... the prospect had a puzzled look on their face and said what... I then replied... "well... I am just offering you the same quality policy the other agent is offering" That really put it in perspective... wrote it!

 

[jtm1240]

Are you suggesting we be dishonest as well... or are you saying get over it...

I actually know of a local competator who slot rates everything and just counts on year 2 and 3 when the risk is audited and premiums are adjusted for the client to see what they should have been paying all along. The problem in that is for instance if you rate an excavator as say a landscape gardener there is a large chance any claims the client has under its products and clompleted ops will not be covered...

I say if you are competing against this situation you really need to drill it hard.

In a recent experiance I had I pointed out that the competing quote was coded wrong and that they were putting their company at risks by going this route to save a buck, I then asked them where the bathroom was... went to it grabbed a peice of toilet paper walked back into their office and wrote the word Insurance on it and asked for the same amount the competeing agent quoted... the prospect had a puzzled look on their face and said what... I then replied... "well... I am just offering you the same quality policy the other agent is offering" That really put it in perspective...

_______________________________________________

I am suggesting to deal with it and not to be dishonest.

I agree with you about policies that are auditable and not slot rated. It is less likely that you will run into misclassifications and, as you pointed out, the auditor will be the final judge. If a contractor has been through an audit or two they are much easier to deal with on an honest basis.

Did he buy the toilet paper our your policy??

 

[Scottyj]

I sold em... I must admit this only will work with certain types... Contractors for sure, maybe not a flower shop, or a more conservative environment so I dont recomend that approach for everyone... haha