Update on Applied Underwriter Issues

After my article last week identifying costly aspects of Applied Underwriters' workers compensation insurance policies that are unusual, hard to predict, and totally undisclosed in the market/sales process, I have gotten a lot of feedback.

The first, of course, was from the lawyers at Applied Underwriters who have threatened me with a libel suit unless I take down my comments.  While my blog article wills stay up, Applied Underwriters have apparently managed to get Yelp to hide my reviews in the secret purgatory they maintain for reviews that displease corporate lawyers.

More recently, I have had calls from not one but two different attorneys who are representing Applied Underwriter customers.  The one this morning was especially evocative -- he had years of experience as an attorney and litigating over contracts like this but thought he was crazy because he could not figure out the math on the Applied Underwriters statements until he read my post.  I had had the exact same issue, almost in tears because I could not figure it out, until an industry insider explained to me that the numbers don't add up.  After pages of step by step calculations, there is one step where they simply pull a number out of the air, essentially rendering irrelevant all the calculations that went before.  I will respect their client confidentiality but say that the issues involved were very parallel to those I discussed in my article.

Feel free to contact me if you need help or are considering a policy with Applied Underwriters and I will lend you what knowledge I have.


  1. slocum:

    Well, I don't think I'll be in a position to need that kind of workers comp insurance (there are definitely benefits to having a business with only partners and no employees), but thanks for the reminder never to use Yelp.

  2. PA32R:

    Can you share the libel suit threat? I'd be curious.

  3. SamWah:

    So, you can show that the contract was fraudulent? Most excellent for you and the others defrauded.

  4. Billford:

    Warren, I always enjoy your blog, although I don't always agree. I think it would be wonderful if you found yourself the lead plaintiff in a class action lawsuit against your insurer. Plaintiff lawyers rule ! ! !

  5. Todd Ramsey:

    Have you written directly to Warren Buffet? He claims he will be "ruthless" with his managers who damage the reputation of the firm. I don't know whether he would actually read your letter, but he cites instances of reading complaint letters from his operating firms' customers.