I am a small business, it is required we have workers comp insurance under the law. We purchased a policy with Travelers Ins, paid the premium in full for a calendar year, with an exclusion of one person (this is key).
After 12 months, renewal came up and we learned the policy had been cancelled for over 7 months for, "failure to pay an additional $168 for an unlisted employee". This is the person who we "excluded" from the policy, as stated on both the audit and our agents emails to Travelers.
To date we have learned that Travelers did in fact include the exclusion and offered, after the policy expired, to make it retro-active. I operated for over 7 months without mandated coverage and all Travelers wanted to do was, 1) Blame us for non-payment, 2) Blame the agent for not including the exclusion, and 3) Raise my premium 60% and act like nothing happened.
I have requested a refund of the monies paid for the time period in which the policy was cancelled (7 months), had another audit, which revealed the exclusion was indeed included in the policy from the beginning. Naturally Travelers is slow to issue a refund and deaf to the fact they wrongfully terminated a policy.
I was told by Travelers Insurance that they made a business decision that was best for us, imagine that, they made a decision for the operation of my business by cancelling a policy and then graciously offering to renew at a 60% premium increase, all on a company that has never had a claim.
Can I sue? Who knows, it appears the legal community is only interested in representing injured workers or want $150+ per hour to send letters.
Gotta throw up the BS flag here!
After 25 years in business, the giant slayed another small guy.
Review about: Travelers Insurance Company Claim.
Monetary Loss: $12000.