When working with contractor clients, an area that is extremely important to review are their payroll and gross
receipt numbers. With many insurance companies providing composite rates based upon sales, double check what the client is telling the insurer on their supplemental application. One recent example of this was when the insured reports that they will have $3,000,000 in gross sales. Come to find out, the “bookkeeper” put down their gross profit. Their actual gross sales were $23,000,000. Needless to say that was one hefty additional premium.
Marjorie Segale (AFIS, CISC, RPLM, CIC, CRIS, ACSR, CISR)