Audit Premium Financing

[joey52]

I have a client who recently had an audit done and they owed over $5300. Is there a finance company that will finance audit premium? thanks

[darnovak]

What your 'client' needs is a loan. Hope this isn't a 'triple whammy' which is 1) big audit premium, 2) renewal premium due, and 3) an endorsement to the already-issued-renewal increasing the basis of exposure (receipts, payroll, area, etc) to bring the renewal up-to-speed. These can be deadly! Once the debt is paid the client should be put on a monthly or quarterly reporting program (if any carriers still offer these options....?) In the future it is obvious the client should not 'low ball' their exposure of payroll, receipts, areas, etc. Earn and learn...... Bright side: if they pay you get the commission - wow!

[yoyowordup]

I have seen finance companies offer payments on audits. It usually requires a personal guaranty of some sort and a promissory note. Call around.

[JohnnyLaw]

Joey 52, recently had a Iron and Steel erector that projected his payroll to be about $240k and ended up after audit
being $998K. He got hit over the head with a bill that was North of 100k. Of course he called up and was fit to be tied.
When this happens, try this it certainly worked in my situation. Tell him that he just got float on the additional bill
and that if he is managing his company well then you congratulate him has he has had much success. I got exactly what
the previous poster, posted, i.e. audit premium, renewal premium, and several endorsements. I agree he should just
talk to his bank about a line of credit or pay you with a CC. Be careful signing a guarantor note. This customer I am
referring to is now a blue chip with my agency. Good Luck

[jamesjmoore]

A number of insurance carriers will allow the premium audit premiums owed to be paid out over time, especially if the insured is still with them and was surprised by the audited amount. As a ChFC, I always try to recommend that insureds do not finance the premium over a longer term than six months, if possible.

[joey52]

Thanks everyone for your replies. I have submitted a request to the carrier to see if they will accept a payment plan.