General Liability audit problem help?

Question

Insurance send me a bill for $ 14000 that I owe from a audit

they say when I gave the information at the begin of the policy

does not match my audit information

I always have given the same info its always been the same

2 owners 4 contract workers and $40,000 total pay for the owners after deduction, material, expenses .

I have no paper work since the renewal I had just had c-section

and my helper lost the paper work . My agent blames me that I gave false info . I have asked them to fax me a copy of the renewal with the info I gave owner and worker. They say pay pay pay. The truth is I have 0 dollars to pay no money.

How can I deal with this problem find a way to proof its my agents mistake .When I signed all that paper work .

Answer 1

Clearly, the contract workers didn't provide you with proof that THEY carry GL and WC coverage - in which case, they are counted as employees, and charged accordingly.

It's likely NOT your agent's mistake.  They don't make up numbers.  You ask the agent for your original policy, and the RATING WORKSHEETS.   There, you can see the payroll amount, and the rate.  Then, you ask for the AUDIT WORKSHEETS.   WHich they should have sent you with the bill.  You can compare the payroll amount from the audit, and the original policy, to see the increase.

You can likely solve this, by asking your contract workers for certificates of insurance for GL and WC, covering the time period they worked for you.  If you thought, by calling them contract workers, they weren't employees, and you wouldn't have to pay WC or GL for them, well, you got crappy advice about that, because it's not true.  But lots of contractors do it anyway - then get nailed with big audits, and blame it on the agent, because the agent asked about "employees".

If you're going to keep your company open, you're going to have to go to your agent, and have them work out a payment plan for the audit, and the current term.  Otherwise, you shut the business down, and let them come after you for the money.  Which they will.