A lawsuit alleges a trucking firm in Oklahoma underpaid an insurance company.
The suit claims J&R Transport only paid National Union Fire Insurance Co. of Pittsburgh, Pa. for estimated premiums and owes nearly $300,000, plus interest, attorney fees and other costs.
The lawsuit was filed Oct. 15 in federal court in Oklahoma.
The estimated premium for an initial year of the policy beginning December 2020 was $538,255 and $492,712 for the following year, per the suit. Both amounts were paid during those coverage years.
The increases in the estimates came after the insurance company, part of New York-based AIG, conducted audits of J&R’s books and records.
“The estimated premium for this Coverage Form is based on the exposures you told us you would have when this policy began,” a contract submitted as evidence reads. “We will compute the final premium due when we determine your actual exposures.”
An attorney for J&R Transport didn’t immediately return messages seeking comment.
The policy also included named additional insured parties of J&R Service Co., J&R Dirt Works, Hot Oil Units and K. Halley Rentals for coverage linked to contracts or agreements.
