Complaint Review: AIG Insurance - Internet

-----Original Message-----
From: Barry Smith <[email protected]>
To: gary.guzzi <[email protected]>
Cc: Jennifer.Billauer <[email protected]>
Sent: Wed, Oct 24, 2012 11:17 am
Subject: Re: 550-100043; Insured: Personet, Inc.; Claimant: Barry Smith

Dear Mr.Guzzi:
 
You asked me to describe my complaint in a short statement:

I've been in the staffing business for 15 yrs. In 2003 I was approached by Richard Kelmer VP Personet, Inc. to join his staff leasing/PEO program which I did and remained with them for about 3years.

Personet handled my insurance needs(WC/GL)and issued certificates  of insurance to all my customers produced by Bouchard Insur and listing Personet as "the insured" From time to time customers would inspect the certificate and some questioned why my firm,"Mebco Corp.dba Networks was not the insured party but usually accepted the PEO relationship explanation. In 06 I started doing business with a few large customers in Miami who also questioned why Personet was the insured and Richard spoke with them directly to make the relationship (Personet/Mebco,PEO) explanation for which he advised me they had agreed to accept. Turned out my new customers used this grey area relationship to burn me. refusing to pay because of temp workers not properly insured and eventually the courts agreed. Word spread that Mebco's temp employees were not insured and spread like wildfire causing us to loose receivables/cuatomers/and in effect the whole business. We now know that Personet was never licenced to be a PEO in FL and it looks like Bouchard&Personet tried to pull a fast one. AIG wrote the GL insurance for Personet and or Bouchard and the WC coverage as well was denied by the courts when we went after some $200g. So 30g yr premiums plus 200g lost receivables and 200g lost customers.
continued:

Barry Smith
6682 Via Regina Dr
Boca Raton,FL  33433
 
Mr.Gary J. Guzzi
Shareholder
Akerman Senterfitt | One Southeast Third Avenue | Suite 2500 | Miami, FL 33131-1714
Dir: 305.982.5557 | Main: 305.374.5600 | Fax: 305.349.4793
[email protected]
 
RE: 550-100043; Insured: Personet, Inc/Bouchard Insurance
 
Mebco Corp dba Networks will now be forced to close after a 15 year history due to our losses as previously itemised in this claim.
 
Please accept this letter as our demand in the amount of $490,000.to settle this claim in the above referenced matter. This demand is valid for 30 days from the date of this email communication
 
I await your reply.
 
Very truly yours,
 
Barry Smith
[email protected]
 
-----Original Message-----
From: gary.guzzi <[email protected]>
To: barry2sfl <[email protected]>
Cc: Jennifer.Billauer <[email protected]>
Sent: Mon, Oct 15, 2012 2:55 pm
Subject: RE: 550-100043; Insured: Personet, Inc.; Claimant: Barry Smith

Thank you Mr. Smith.  It was nice speaking with you and I appreciate the information that you were able to provide to me.
 
However, as I mentioned during our conversation, due to the nature of this claim and factual background, I anticipate that it may take some time for Chartis to investigate the nature of the claim and determine whether the claim presents potential exposure to Chartis's insured and whether there is any coverage for the claim under the policy that Chartis issued that insured PersoNet.  At this time, Chartis cannot provide a specific time frame regarding a resolution of the claim due to the factual background and the significant lack of information and documentation regarding the claim.
 
As I also mentioned, in the event that you have any documentation regarding your claim, it would be helpful for Chartis to receive and review the documentation.  Such documentation might include items such as any correspondence between Mebco and PersoNet, between Mebco and any of MebCo's clients that may address the issues involved in your claim, any invoices that were unpaid by Mebco's clients that were allegedly not paid due to PersoNet's purported wrongful acts, and any other documentation that may substantiate the existence and/or extent of any damages that Mebco may have suffered because of PersoNet's purported wrongful acts.  What may be particularly important is any documentation that evidences exactly what services PersoNet was purportedly supposed to provide to Mebco and how or whether PersoNet failed to perform whatever services it was supposed to perform that gives rise to Mebco's claim.  Although the information that we discussed on Friday was helpful in obtaining a general background, it is still not entirely clear exactly what the basis of Mebco's claim against PersoNet is.
 
As I also mentioned, Chartis did not write the workers' compensation insurance policy for PersoNet.  Chartis wrote only a staffing services liability policy that insured PersoNet.  If the nature of your claim involves coverage provided by the workers' compensation policy, you will need to seek recourse from the workers' compensation carrier.
 
Finally, I understand that you recently retained an attorney to prosecute some type of claim on behalf of Mebco, which may be related to the issues involved in your claim.  Please advise as to whether you would be willing to have your attorney discuss some of the factual background with me.  Of course, none of the information that would be shared would be any attorney-client or other privileged information, but your attorney may be able to shed some light on some of the factual background involved in this matter.  If you are willing, please advise and let me know the attorney's name and contact information.
 
Thank you for your assistance with these issues.