Monday, August 14, 2006

What will it take for Synaxis to stand behind an insurance policy?

According to the website of the Synaxis Group,
For 29 years, Synaxis Polk & Sullivan has put the interests of clients first. We can draw upon the extensive capabilities of the entire Synaxis organization to meet your needs.
This claim seems to be in dispute according to a news story in today's Valley News Dispatch entitled "Hot dispute."

There had been a fire at Freeport Brick on Feb. 2, 2006. In ten days it was clear that the fire had affected the ability of the company to fill orders.

Synaxis Polk & Sullivan of Nashville, Tennessee, who is alleged to have sold Freeport Brick a $4.6 million insurance policy against catastrophic losses has denied that Freeport Brick was covered for this loss. In June Freeport Brick's parent company sued Synaxis Polk & Sullivan for breach of contract.

The news story quotes Freeport Brick's Plant Manager Mike Livingston as saying "We are hoping to get the insurance company to the table."

Synaxis simply wants the lawsuit to be moved to Tennessee.

This sure seems like a strange way to "put the interests of clients first."

The "entire Synaxis organization" is getting smaller. Earlier this month the Synaxis Group sold off two of its insurance companies, Synaxis Van Meter Insurance Agency and Employers Risk Services, to the Bowling Green-based Houchens Industries. As of today, the Synaxis website does not reflect the sale of those units.

File under :

2 comments:

Anonymous said...

I believe the insurance company might be pursuing a foot-dragging strategy.

If they prolong the court fight, Freeport Brick and its parent company might go out of business before Synaxis Polk and Sullivan have to pay any settlement or judgment.

Stewart said...

It looks like Synaxis are dragging their feet, but the purpose of the delay is not necessarily obvious.

It may be that Synaxis is the company in the more severe trouble, and a delay buys them time before they have to face the music.

In the meantime the Alle-Kiski Valley will feel the ripple effects of their delay.