The Challenge: A $98,000 Audit Bill for a Roofer in Long Island

A residential roofing contractor in Suffolk and Nassau County received a shocking $98,000 charge from an insurance audit. The insurer applied fees based on all of the roofer’s work during the audit period-but there was a major problem.

His policy contained a hidden exclusion: Any work performed on developments with over 75 units was not covered.

The roofer had no idea this exclusion existed, and 90% of his work during that period was on developments exceeding 75 units. Despite this, the insurance company included those projects in the audit total charging him for coverage they would never have honored in the event of a claim.

His current broker failed to catch the issue, simply passing along the full charge. That’s when the roofer turned to Baldon Insurance Group for a second opinion.

The Baldon Approach: A Strategic Audit Review That Saved Him $80,000

Rather than accepting the audit results, we took a hands-on approach to investigate.

1. Analyzing the Audit Charges

• Requested a full breakdown of all the jobs completed during the audit period.
• Identified which projects exceeded 75 units and were therefore excluded from coverage.
• Confirmed that the insurer could not charge the roofer for projects they wouldn’t have covered.

2. Presenting Hard Evidence to the Insurance Carrier

To support our case, we:

• Gathered job lists, contracts, and receipts to prove the number of units for each development.
• Submitted documentation to the carrier, highlighting that if a claim had occurred on these jobs, the insurer would have denied it-so they couldn’t retroactively charge for those projects.

3. Securing a Major Reduction in the Audit Bill

By presenting a clear, data-driven argument, we successfully reduced the audit bill from $98,000 to just $18,000-saving the roofer $80,000.

Beyond the Audit: Finding Additional Cost Savings

Impressed by the results, the roofer asked us to review his entire insurance program. Our findings:

• We saved him over $50,000 on his General Liability premium.
• We reduced his Umbrella premium by $25,000.
• We eliminated the unit cap, ensuring that his future work wouldn’t be excluded from coverage.
• We provided full Contractual Liability, Waiver of Subrogation, and Primary & Non-Contributory endorsements to strengthen his protection.
• We lowered his deductible from $10,000 to $5,000, reducing out-of pocket expenses in the event of a claim.

The Results: Over $155,000 in Total Savings & a Fully Protected Business

• $80,000 saved on the insurance audit
• $50,000+ saved on General Liability premiums
• $25,000 saved on Umbrella insurance
• A policy free from restrictive exclusions, ensuring proper coverage for all future jobs

What started as a simple audit review turned into a complete transformation of his insurance program. Now, the roofer is fully insured for his actual work, paying significantly less, and has peace of mind knowing Baldon Insurance Group has his back.

Is Your Insurance Broker Overlooking Cost-Saving Opportunities?

If your insurance audit results don’t add up or your policy has hidden exclusions that leave you exposed, Baldon Insurance Group can help.

Schedule a 7-minute consultation today to see how much you could save!