Workman's Comp Insurance Nightmare

[equinn]

My husband owns a small business and contracted with a local ins agency. Last spring he finally got around to doing some comparisons and realized he was paying way too high a premium for his worker's comp insurance. He changed companies. The cancelled company then proceeded to
do an audit. They have presented him with a bill in excess of $11,000 for a one year period since his payroll was actually higher than what the premium was based on. This could virtually wipe him out or at least make it an extreme hardship for our family. We do not dispute the figures for payroll but find it hard to fathom that we are paying this much when not even one claim was made for a coverage period that is over. Do we have any options in this case? I am especially upset with the insurance company that we dealt with that did nothing to find him a lower rate - can we insist that they return their profit from the audit? Can we work out a compromise amount? Where do I turn to make this nightmare go away?

 

[lawrat]

I am a law school graduate. WHat I offer is mere information, not to be construed as forming an attorney client relationship.

Basically, what you have here is a POSSIBLE insurance bad faith case. BUT, if I were you, I would seek counsel. Try attorneypages.com in your state. or contact your local city hall and see if your county/city offers any type of employment labor law organizations for consumers/small businesses that are free or low cost.

I think what the insurance company did or is trying to do is highway robbery.

Hope this helps.