Insurance Company Asking For Additional Pay

[iKwak]

What is the name of your state? CA

Hello. The small business is for a supermarket. The insurance company figures out the insurance rate by the total value of the inventory (market goods). The insurance company gave me a quote and I've paid the annual cost, which I started on September 2003.

I received a letter and a phone call from the insurance company saying that they have miscalculated the total inventory and figured out that our inventory is higher than they have previously calculated. Therefore, they are requesting additional pay for our 1st year insurance cost.
Well, of course I refuse to pay because it was the company's mistake and we agreed on our insurance contract of the annual term and fee (which I have paid).

I will soon need to renew the insurance by the end of September and still, the insurance company is requesting the additional pay for the first year term. I have my rights to refuse, correct?


Thank you for your time.

 

[Dandy Don]

Is any of this mentioned in the contract? How much additionally are they asking for?

Ask them for specific details of what the miscalculation was--what are the numbers? Just to prove that they aren't trying to gouge you for more money.

You can refuse to pay the additional amount but they can also refuse to cover you. Have you checked your options about possibly transferring coverage to another insurance company?