What can I do if my insurance company and agent wrote the wrong coverage and now wants my company to pay them back thousands?

UPDATED: Oct 1, 2022

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What can I do if my insurance company and agent wrote the wrong coverage and now wants my company to pay them back thousands?

We were audited by our insurance company for the 2017 year and they said we owed them $30,000. We fought their audit and they wrote off the 2017 extras because they agreed they screwed up. However, now want us to pay the 2018 extra payment because of that screw up. Which is approximately $15,000. And our Agent isnt going to bat for us because they realized they screwed up too. It’s not fair that because of their negligence I should be held responsible. I am afraid to just tell them to pound salt because we have all our

snow removal insurance through them and we have a lot of large commercial customers.

Asked on December 13, 2018 under Insurance Law, New Jersey


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

We assume you were provided with a copy of the policy when you were purchasing it. In that case, you can and should have reviewed the policy at that time and corrected any mistakes in coverage. If you did not do that, then because people are held to have read, reviewed and agreed to the contracts they sign (insurance is a contract), if you accepted the "incorrect" coverage, signed, paid for it, and never sought to correct it, then it is not considered a mistake or the wrong coverage--it is the coverage you bought. So you would have to pay for it.

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