Asking for more money even though already paid premium

beetle1978

We renewed our combined liability insurance recently and the broker gave the insurance company the wrong turnover figures. We paid the premium and when realised that the wrong figures were used we asked the broker:

1. Are we still covered?
2. Will the premium change once they have adjusted the figures.

They assured us that we were covered (though no paperwork to prove it apart from an email stating this) and the amount we paid will not change when they had sorted out the new figures.

We have had no paperwork from them, hardly any contact as they keep ignoring calls and emails but they are now asking for a few extra thousand from us to adjust the premium.

Could someone give me some advice on this? Thanks in advance!

Quentin

If you have it in writing that the error would not affect your premium then take this request for £thousands up with your broker, and obviously don't pay any more!

beetle1978

Thanks for your reply. Unfortunately we don't have in writing that the premium wouldn't change. This was stated over the phone.

They are saying that another broker that we went to for quotes gave the insurance company the wrong figures and so this is what has caused the dispute? How on earth can another insurance broker have anything to do with their mistake?

If we were to pay the extra we would have been as well going with a different company in the first place for that price.

Quentin

Are they denying telling you there was to be no change in the premium? (Telling you verbally is as good as telling you in writing - though not as convenient if there's a problem!)

dacouch

Are they asking you for an extra premium based on the increased turnover / wageroll for the previous year and / or for the forthcoming year ?

Was last year's premium based on projected figures ?

Did you fill out a form prior to renewal stating your actual turnover / wage roll for the past year ?

beetle1978

Quentin - Yes they are now denying that there would be no change.

Dacouch - The figures we agreed with them were for the forthcoming year. The figures they have used were from the previous year which were considerably less.

We had a face to face meeting with them to arrange our insurance and figures.

If we were to get proof that they did say the premium wouldn't change would we have to go through a solicitor?

Quentin

If you are able to prove the error has been discussed and you were assured there would be no detriment to you, then a solicitor shouldn't be necessary. Use the complaints procedure.

(Don't you use estimated/historical figures then correct them at renewal each year?)

beetle1978

Our figures used were estimated on turnover for 2010 to 2011. Last time we got insurance through them the figures were based on the previous years estimation in which a downturn of business was immenent so were alot less.