Wrong Premises Address?

[VaDwayne]

I am working with a contractor that called me because I was referred by another contractor. I did my interview with his daughter, the decision maker yesterday, and got copies of their current policies( CPP, Workkers Comp, and Commercial auto). They are currently paying about $23,000 a year. I did a good job uncovering some pain and feel like I have a great shot at getting this business.

The office building that the contractor has his office is owned by his LLC and leased back to the othe company. She also wanted me to quote that building as well, estimated and currently insured for 1.5 million. Here's the problem!!!

As I was looking over her Nationwide policy on the building, I noticed that the insured address was a completely different building than they occupy, and it is not even owned by them. The contractor had a small office in the "wrong address" while he built this new building. He hasn't been in the "wrong address" for 3 years, and NEVER owned it.

I know the insurance company could deny a claim on the new building because of the wrong address, but in your experience what is the real world result of this error?

By the way, the contracting business is insured with a different agent and carrier....

 

[Guest]

Pending a revision to the address the carrier may be hard pressed to deny a claim since the insured is paying a premium. Also, if the building is mortgaged the lender may notice a inccorrect address on the proof of insurance.
If there is a common ownership interest between the separate entities (contractor LLC and the building) explore the possibility of dropping the separate building policy and add the building entity and building coverages to the existing CPP. Good luck getting the account!

 

[joshb]

Nationwide would probably not deny that claim. They are not known for denying claims. As a former Nationwide agent there were times we wished they would deny a claim because it was obviously fraudulent, but they paid it anyway. If they did deny it, it would fall on the agents E & O, which I believe Nationwide provided to us (through one of their subsidiaries), if I remember correctly. Good luck with the account, should not be too hard to compete against Nationwide.