Work Comp Question........

[Herkster]

Hey everyone

We have an automotive shop insured through the pool, they hadn't had previous coverage and we couldn't find anyone that wanted the risk without prior experience.

Anyways, the yearly audit is being done right now, and they are wanting the owner, who just formed an llc this year, to provide them with his 1040 and schedule C docs.

Now, the owner is excluded from the WC policy, so the only payroll information needed for rating the WC is his employees, which we have already provided a W3 for. I'm curious, why is a company looking for how much the owner/business made when they are excluded from the policy?

 

[Arnage150]

Hey everyone

We have an automotive shop insured through the pool, they hadn't had previous coverage and we couldn't find anyone that wanted the risk without prior experience.

Anyways, the yearly audit is being done right now, and they are wanting the owner, who just formed an llc this year, to provide them with his 1040 and schedule C docs.

Now, the owner is excluded from the WC policy, so the only payroll information needed for rating the WC is his employees, which we have already provided a W3 for. I'm curious, why is a company looking for how much the owner/business made when they are excluded from the policy?

What state?
Was is a sole pro or corp before the LLC formation?

Some auditors just follow a form and ask for everything even when they dont really need it.

 

[BigSteve]

You said they have no experience, do you mean no experience in the business, or that it is a new venture, or both?

 

[Herkster]

You said they have no experience, do you mean no experience in the business, or that it is a new venture, or both?

Just no WC experience, didn't have a need for an employee until business got too much for one guy to handle by himself. The owner was a mechanic at a different shop for 5 years before going solo.

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What state?
Was is a sole pro or corp before the LLC formation?

Some auditors just follow a form and ask for everything even when they dont really need it.

Sole Pro in 2014, LLC formed 1/1/15.
But still, it shouldn't matter, as his payroll, and himself, are excluded on the policy. Seems dumb to me, and the UW is a smartass and is pissing me off

 

[Indiana_Adam]

Is the owner actually excluded from the policy? He may be included automatically unless a particular form has been signed. May want to double check. Otherwise, like the others said. Auditor may have set info he collects as he most likely isn't privy to what it and isn't on the policy.

 

[insurance1822]

Underwriters are scum Bags

 

[Indiana_Adam]

Underwriters aren't scum bags. They are doing their job. Some are better than others. Without them, you make no money and vice versa.

 

[UW Guy]

Just no WC experience, didn't have a need for an employee until business got too much for one guy to handle by himself. The owner was a mechanic at a different shop for 5 years before going solo.

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Sole Pro in 2014, LLC formed 1/1/15.
But still, it shouldn't matter, as his payroll, and himself, are excluded on the policy. Seems dumb to me, and the UW is a smartass and is pissing me off

Incorporated less than one year, coming from the pool, and he wants to exclude himself is going to earn you some questions.

insurance1822

Underwriters are scum Bags

Some carriers are getting terrible about hiring kids straight out of college. It's like UW on the P&C side is now like claims. Pluck up a bunch of business majors, throw something around $35K-$40K/yr (depending on region) at them and see who sticks around or is trying to get a better job in Home Office. Life carriers are only marginally better; most are more worried about keeping the costs down.

 

[RFMaurone]

Words have different meanings in different industries what exactly is a scum bag in the insurance industry?

Sent from my iPhone using InsForums

 

[insurance1822]

Scum bag refers to that client who will say they don't want a particular coverage, sign off on the endorsement & then upon claim time they'll assert they never knew the coverage was available...or they "were told they had it the whole time.." --scum bags

They will also call up & lie about their payment history. "you're cancelling me & I just made a payment last month!" -- scum bags

They will call up after a rate increase & upon being asked "did you have any claims?" they'll say NOPE. Then you'll notice 2 at fault claims the last policy period. They'll hope that by saying "no" you'll somehow conclude their rate increase was a mistake & magically lower it -- scum bags

They're the person who will call up after adding a car & say "I WAS TOLD IT WOULD ONLY BE $5/MONTH EXTRA" when it reality it's $80/month extra. They hope that by somehow lying they'll get us to lower their rate -- scum bags

They're the person who you'll remarket their insurance & save them money...only to have them LEAVE for another company who's providing less coverage for a price you could have beaten if you offered lower coverage -- scum bags

ALL underwriters are scum bags as well. There's just varying degrees. A level underwriter scum bag is he who will underwrite everything BUT also accepts reasonable answers and/or documentation. There's the level 10 scum bag underwriter who will underwrite everything & then some...and also make you provide documentation that's entirely unreasonable & even in circumstances where they KNOW what they're looking for...but just want you to chase it down for them anyway. -- scum bags