If I do not settle up my GL Insurance Additional premuim due. From Last year audit do I turn to collections?
I got bill for $14,000 from last year time 10-06- 10/07
If i do not pay and cancel my policy for 10/07-10/08 does my
info seize sent to a collect agency.
Answers: If you don't pay your AP, your insurance company will eventually cancel your policy for non pocket money. Then you'll be without coverage, or have a lapse contained by coverage, which is a bad situation for many reason. The insurance company will eventually sell that debt to a collections agency in an force to recoup the lost premium.
I have see cases where cancellations for non-payment enjoy resulted in detrimental hits on the business' insurance scores (sort of resembling a credit score, but for businesses.) This may have an influence on the premium you'll payment with your next insurance company.
I enjoy some suggestions. Work with your agent to see if they have a premium financing program. The agency or the PF company will earnings the insurance company, and you pay the agency or PF company over time. Also, depending on your agent's relationship with the company, possibly they can arrange a special payment arrangement. Instead of paying the $14k in one lump sum, possibly you can divide that into a few installments. Do whatever you can to pay the company and resolve your financial standing. Even if you switch insurance companies, the billing delinquency may come hindmost to haunt you in the adjectives. It's best to reconcile the AP as soon as humanly possible.
My next suggestion is-- without exit a huge can of worms--please make sure that your payrolls/sales/revenues are updated and accurate and endorsed on your policy ASAP. I am not sure if you work directly with your insurance company, or if you step through an agent, but I would hope your agent reports your payrolls (or whatever the premium basis is for the audit for your type of business) on a consistent argument.
If your payrolls/sales/revenues are volatile, and fluctuate drastically from year to year (or even month to month) I would suggest asking your agent or insurance company if they offer a self-reporting feature. You convey your updates to the insurance company on a monthly or quarterly basis, and your policy is endorsed to reflect the change at exactly that time. Pay the AP, or receive the RP (returned premium), as your business fluctuates, at that exact time. If you take these fluctuations into account throughout the year, consequently there should be little to no AP or RP at the year-end annual audit. :)