Proper commercial classification code for CGL

[Scott Ashton]

So I'm waiting on underwriters because my customer wanted CGL yesterday to work on hurricane cleanup. My Underwriters said the customer is removing debris which falls under demolition. Lost to my competitor who wrote it under handyman. Any thoughts on this? Did I do proper diligence or should I've written it under handyman?

 

[marindependent]

The job is much closer to demo than handyman. Class codes are often imperfect. Sometimes its our job to explain to clients the larger problem that can occur from the slight of hand on lots of insurance applications.

I personally would not be so interested in the policy as it sounds "temporary" to me and I hate temporary business.

There is nothing wrong with turning down bogus business, BTW.

 

[NY independent]

Handyman code for debris removal? Watch out for the classification limitation endorsement (if it has one) if there is a loss. Bad outcome for the insured and selling producer.

 

[Elliot Becker]

Sounds like the insured got a Next or Progressive quote and did their own classification lol. "$5k for demo classification? *Switches to handyman* woohoo, $500, that's more like it!" *Checks all the boxes saying he's not doing demo on the online system

*Claim comes in not covered*

*OMG, INSURANCE IS A SCAM*

Can I swear here? Because *** that guy

 

[Scott Ashton]

Elliot you're right on. I don't like writing this stuff either but I have his other insurance and of course I'm the bad guy

 

[ehall2]

Handy man class isn't the right classification. The insured isn't building or repairing anything.

 

[Policy Monkey]

Unfortunately for the client, the truth often comes out during the (inevitable) audit after the term. That's when the carrier finds all the undisclosed employees, revenue and work activities, then retroactively bills the client accordingly. Those calls are never fun.