Ins. agent screwup

[Mary Lane]

Calif. My husb. & I own a small radiator repair business. In Jan. our ins. comp. notified us they were not going to renew our property and liability ins. at renewal time. I contacted our agent &she said she was working on it. After numerous phone calls leaving messages. She would call after hours and leave a message that she was working on it. Just received a letter from her on Sat. with a quote that was SIX times the cost and that I had 2 days to come up with $800 . My policy expires on 3/27. I feel like I am being railroaded into taking this policy with no other choices. Is she screwing with us or what? Can someone pls. give me some advice about this. We do not have any employees. Thank you very much.

 

[ALawyer]

Since 9/11 insurers have been dramatically increasing rates on all P&C lines of coverage. In fact, rates for many lines had been far too low. BUT yours is as large an increase as I have heard of for a non-terrorist target, and unless you have had claims made, I can't figure it out.

This is not alegal issue, but try demand an explanation from your broker and try another broker. My sense is that the problem was your original premium was below the minimum dollar threshold companies feel it is worthwhile to write business. It is something like buying eggs at the supermarket. Say you want only 1 or 2. BUT the minimum amount you can buy at the supermarket is likely 6 or 12, and you'll have to pay the same for 1 or 2 as the dozen.