An existing business " xyz Inc." closed and sold it's assets including its name, show room, phone numbers, web site, existing clients and machinery to "ABC Inc". The insurance brokerage company that had been handling the insurance for "xyz Inc." was informed of the change in ownership/structure and that new company would need liability insurance.
The insurance broker/agent failed to correctly identify the new entity on subsequent insurance policies. The broker/agent used corporate information for defunct "xyz" when they should have used the information for "ABC Inc". The correct name of the new company is "ABC Inc dba xyz". The broker/agent never identified "ABC Inc. dba xyz" on any policy but rather an incorrect name e.g. " xyz Inc. dba ABC Inc."
Is it likely that we will be able to recover the past premiums for a business that was never legally insured? What kind of accountability does the ins. broker have in this matter?
We currently have an outstanding premium due for this erroneous business name and the insurance co in threatening legal action on a past due premium. Do we have to pay this debt?
Additionally:
The broker/agent never offered "ABC Inc dba xyz" alternatives for liability insurance and kept "ABC Inc dba xyz" insured by a company that had the highest rates in the industry. Isn't it the brokers job to find the best insurance for their clients, wouldn't this include other comparable companies with lower rates? We were never offered liability insurance options we were just guided to the highest rates. We relied on our broker to be our advocate in an area where we had no expertise but instead of consideration we were fleeced. Do we have grounds for legal action?
The insurance broker/agent failed to correctly identify the new entity on subsequent insurance policies. The broker/agent used corporate information for defunct "xyz" when they should have used the information for "ABC Inc". The correct name of the new company is "ABC Inc dba xyz". The broker/agent never identified "ABC Inc. dba xyz" on any policy but rather an incorrect name e.g. " xyz Inc. dba ABC Inc."
Is it likely that we will be able to recover the past premiums for a business that was never legally insured? What kind of accountability does the ins. broker have in this matter?
We currently have an outstanding premium due for this erroneous business name and the insurance co in threatening legal action on a past due premium. Do we have to pay this debt?
Additionally:
The broker/agent never offered "ABC Inc dba xyz" alternatives for liability insurance and kept "ABC Inc dba xyz" insured by a company that had the highest rates in the industry. Isn't it the brokers job to find the best insurance for their clients, wouldn't this include other comparable companies with lower rates? We were never offered liability insurance options we were just guided to the highest rates. We relied on our broker to be our advocate in an area where we had no expertise but instead of consideration we were fleeced. Do we have grounds for legal action?
