This page is for franchise owners who got an insurance bill they didn't expect, or want to avoid one. These are the causes we see most, and what heads off each one.
A big bill after the audit
Many policies, especially workers comp and general liability, are priced on an estimate of your payroll, revenue or subcontractor costs. After the policy year, the carrier audits your real numbers and bills the difference. If you grew, the bill can be large.
What to do: give realistic estimates up front, tell us when your numbers rise by about 15% or more during the year, and ask about pay-as-you-go workers comp. See Premium audits.
Subcontractors added to your payroll
If you pay subcontractors who can't show their own insurance, the carrier can count what you paid them as your payroll at audit.
What to do: collect a certificate of insurance from every subcontractor before they start work. Rikor clients can do this in the RMS: see Subcontractor COI Monitoring.
A payment plan you thought was paid in full
A first payment is often only the down payment. The rest comes in installments from the carrier or a finance company, and a missed one can cancel the policy.
What to do: confirm your payment schedule with your consultant and set up autopay. See How to pay your insurance bill and set up autopay.
Paying the wrong company
If your policy is financed, the finance company bills you, not the carrier. A payment sent to the carrier can leave the finance account unpaid.
What to do: pay whoever sends the bill. If you get bills from both, email us before you pay.
A charge after a change
Adding a vehicle, a driver, employees or a location changes your premium from the date of the change. The carrier's bill can arrive weeks later and look like a mistake.
What to do: tell us before you make the change and ask what it will cost. See How to make a policy change.
Notices sent to an old address
If your email or mailing address changes and the carrier doesn't know, you can miss a bill or a cancellation notice.
What to do: tell us when your contact details change, and we'll update every policy.
A refund that hasn't arrived
When a policy is cancelled early, unused premium is refunded by the carrier, and it can take several weeks.
What to do: email us if it's been more than 30 days and we'll chase it.
Don't understand a bill? Email a copy to support@rikor.io and we'll walk you through every line.