Back Audit

I have a client who was charged over $100,000 for a General Liability audit premium from a previous policy period with a previous agency.

Upon reviewing all the documents, I immediately noticed that the classification was incorrect. The insured performs kitchen duct cleaning and some office janitorial services; however, the declarations indicated "CHIMNEY CLEANING," which obviously has a much higher exposure rate than the correct classification.

The insured is traumatized by the audit collection letter from the carrier, and the previous agent has not taken responsibility for the issue.

I am submitting a dispute on behalf of the insured, but typically, the carrier directs these matters to the broker/agent for discussion. Of course, the agent is not taking any action. How can I handle this most appropriately without the situation turning ugly?

I really can't help without a lot more information.

$100,000 audit premium seems just HUGE especially when you consider that CGL premiums aren't generally all that high. Not to mention what the deposit premium had to have been at the beginning of the policy period.

How can you handle without the situation turning ugly? It's already ugly.

Without knowing the whole thing, I can't offer any advice.