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IBOA's
liability insurance companies |
| In a situation that should have a chilling effect on current Amway Quixtar
distributors and IBOA board members, former Amway distributors are learning quickly
that they sometimes have to sue their own insurance company to get the insurance company
to perform to their contract. The Independent Business Owners Benefit Association
bought a Commercial General Liability policy through its agent Alticor Holdings,
Inc. The policy is intended for all Amway Quixtar distributors and is paid for
by the sign up and renewal fees. Now, in a twisted tale of irony, distributors who were
sued by Amway/Quixtar want the insurance company picked by Amway/Quixtar to indemnify
them! The distributors have sued In this case, Quixtar sued former distributors. The company responsible for defending the Amway distributors against liability suits, Liberty Mutual, has not tendered a defense, nor has it accepted its obligation to indemnify the distributors! The Westchester Fire Insurance Company is also being sued in regards to the policy issued for "Directors and Officers" (D&O) liability insurance policy for those named former IBOAI board members. According to the IBOAI website, $5 of a distributor's signup or renewal fee goes to the Independent Business Owners Benefits Association insurance coverage. In this case, the insurance for distributors was supplied by Liberty Mutual Fire Insurance Company commercial general liability policy number TB2-681-00418-016. All distributors who participate in the pool were to become insured under the IBOBA's commercial general liability policy. The policy has an aggregate limit of $2,000,000 and per occurrence limit of $1,000,000. If there are 400,000 or 500,000 North American distributors, you can do the math on what the IBOAI is raking in on their $5 per head insurance coverage. Don't forget, the IBOAI also sued the former board members. The insurance policy endorsement states each IBO who elects coverage in accordance with IBOBA procedures is a Named Insured. While functioning as an IBO, each of the plaintiffs elected to be covered under the Liberty Mutual Policy. According to the suit, Liberty Mutual has refused to meet with the plaintiffs and have failed to respond to the Plaintiffs' request for a defense under the Liberty Mutual policy. If you are a current distributor, you will have to wonder just how good your liability insurance is when a you have to sue your liability insurance company to get them to perform. |
the insurance company to get them to perform to their
contract.