The Heartless

I am treasurer of a non-profit arts organization. Recently, we increased some coverage in our liability policy. We got a bill for the increase in premium for the additional coverage (policy endorsement). However the bill also charged us $7.00 for a service fee. Now this rant isn’t about the money. It’s about the principle of the thing.

When you get a premium notice from an insurance company, you usually are given a choice of paying it in full or paying it over time. If you choose the latter, the premium notice tells you what the service fee will be for each payment. If you pay in full, there is no service fee. Our organization pays its insurance premiums in full and on time when we get the renewal notice. Thus, no service fee.

So, I wondered, why would we get a service fee for a new premium (endorsement for additional coverage)? I called The Heartless and talked first to an “insurance specialist” and then to her supervisor. Bottom line is that whenever any additional bill is sent out during the year, even if it’s for new or expanded coverage within an existing policy, there is a $7.00 service fee per bill. Even if you pay it in full. You get charged just because they sent out a bill.

The same company sends out an adjustment premium for workers compensation insurance (what you owe them or they owe you comparing actual payroll vs. estimated payroll for the previous policy year). There is no service fee for that premium adjustment. Hmmmmm.

I guess I would have rather they just buried the charge in the additional premium for the endorsement rather than tagging on the charge.