Would You Write This Guy? He Will Cancel 2 Months in

[djs]

Doing stuff like this will kill your lapse ratio.
but....
He'll keep the policy. He thinks he can cancel, but show him on the cert where the certificate holder will get notified of the cancellation and he'll change his tune.

If not, send the cancellation notice to the cert holder, they will ask him for proof of the new policy and then he'll be back to reinstate it.

Yes, this hassle is worth a decent broker fee, even if you don't normally charge them.

Dan

 

[iiinycboi]

I've told him that the certificate holder will get notified immediately and contact you to get it back or you will lose the contract. it states specifically in his contract if award that he must have 5MM coverage.

its a 5 year contract.

After reading Dan's post, i think i mis understood his meaning...

He wants the show he has the coverage so he can be qualified to bid for the contract??? Then if he doesnt get awarded he will cancel and if he does get it i dont think he can cancel.

 

[Guest]

in all reality, how much is the umbrella?

 

[iiinycboi]

4MM for $2020 a year ...............................

 

[BTFuzz]

Make up an agreement to bind coverage to give him for bidding purposes. No way in he11 would I write this with a chance of it canceling right away...draw up something from your agency stating he has a pending policy waiting for him should he be awarded the job.

 

[Josh]

Why shouldn't he have that much coverage anyway?

Is there a 800 carrier write that? Let them eat the lapse and switch if he keeps it

 

[rousemark]

The question I have is: "Is this the only job the guy is ever going to bid on?" .. Is he going to go through this every time he submits a bid?

 

[Guest]

He wants the show he has the coverage so he can be qualified to bid for the contract??? Then if he doesnt get awarded he will cancel and if he does get it i dont think he can cancel.

The contract does not require proof of insurance to award the contract because the contract allows the company to terminate the contract for failure to meet any number of requirements including proof of the required liability insurance. Reassure your customer that you are prepared to issue the proof of insurance if he is awarded the contract.

Therefore, it is important that the umbrella quote is a firm quote, not subject to any contingencies, the carrier (both primary and umbrella) will allow you to issue the certificate and the umbrella policy number can be assigned immediately. Unless not already done, you may want to review the liability insurance requirement, in the contract, with both the primary and umbrella liability underwriters.

 

[iiinycboi]

The question I have is: "Is this the only job the guy is ever going to bid on?" .. Is he going to go through this every time he submits a bid?

He bids on multiple contracts. The company bids on contract jobs then hires sub contractors for the work.