Legal Contracts: Do you know what you are signing?

[Joe Marconi]

A good friend of mine owns a plumbing business with 10 workers. Seeing rising workers compensation he found and signed with a local insurance broker that claimed to offer super low rates on workers compensation. This was 6 years ago. I will not bore you with all the details, and will fast forward to three years ago when my friend dropped the insurance because of so many billing errors being made by the insurance company.

 

About a year ago, he got an email, (that's right an email) from the insurance company, not the broker, that he owed $10,000 in workers comp fees. After a year of trying to figure this out on his own, he finally brought all the paper work to his attorney.

 

Here's the outcome: His lawyer reviewed all the paper work and found that the contract my friend signed exempts the broker from any liability and responsibility, that the workers comp insurance company can assess and requests increased fees above and beyond the contracted dates and rates at the time of the contract, and that all arbirtration is subject to the laws of the British Islands and all litigation will be held in the home state of the insurance company, Nebraska. My friend is from NY. The bad news, he is legally responsible to pay the $10,000.

 

The bottom line; know what you are signing and have a lawyer review all contracts for you. We hear this story too often.

 

Please note; due the possible law suits, I cannot mention the insurance company by name or the name of my friend.

[FROGFINDER]

What the LARGE PRINT GIVETH the small print taketh away.

Read what you sign to know if you your Lawyer is pulling your chain.