Buddy Bean Lumber Sues Insurance Carrier
by October 31, 2011 2:41 pm 182 views
A Hot Springs lumber company is hauling its insurance carrier into court for denying a claim of $725,000 tied to the theft of electrical wires.
On Aug. 25, 2010, Buddy Bean Lumber Co. said it discovered a person scurrying from its property with a “few lengths of wire,” according to its lawsuit filed in U.S. District Court in Hot Springs.
On further inspection, Buddy Bean found that nearly all its electrical wiring had been swiped, a loss of $725,000.
Buddy Bean’s insurance carrier, Axis Surplus Insurance Co. Inc. of Birmingham, Ala., paid $100,000 but rejected the remaining $600,000.
Buddy Bean said it would have to cover a $25,000 deductible. Axis said Buddy Bean would have to cover two deductibles because one theft occurred on Aug. 25, 2010, while a larger heist had occurred sometime earlier. But Buddy Bean said the theft on Aug. 25, 2010, was too small to file a claim.
The lawsuit is seeking $600,000 plus court costs and attorney’s fees.
A spokesperson for Axis didn’t return a call for comment.
Axis’ parent company and its subsidiaries wrote $6.6 million in premium in Arkansas in 2010.