Instant Insights / Bad faith liability

Bad-faith litigation has long been a contentious — and big-dollar — issue for insurers.

Liberty Mutual ordered to pay $4.5M on a $25,000 policy

A federal district court in Illinois has ordered Liberty Mutual to pay a $4.5 million judgment despite the fact that it didn't find that the insurer had acted in bad faith.

By Steven A. Meyerowitz, Esq., Director, FC&S Legal | Updated on August 16, 2017

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This story is reprinted with permission from FC&S Legal, the industry’s only comprehensive digital resource designed for insurance coverage law professionals. Visit the website to subscribe.

A federal district court in Illinois has ordered Liberty Mutual Fire Insurance Company to pay a $4.5 million judgment, plus interest, notwithstanding its policy’s $25,000 limits — and despite the fact that it did not find that the insurer had acted in bad faith in declining to defend a 16 year old in a negligence action.

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