Insurance Business reported on Monday on a federal lawsuit tied to a 2018 workplace injury that occurred in Uintah County. The report states that “Liberty Mutual allegedly stonewalled a $5.86 million dollar settlement for years, only to deny coverage after its own lawyers negotiated the deal.” In June of 2018, a Quick Sand employee was injured while hauling silica sand at an oil well in Uintah County. Multiple companies, including the well site owner EP Energy and Tops Well Services that had contracted the work, agreed to be named as insured on the injury claim in addition to Quick Sand. Among the coverage carried was general liability coverage through First Liberty and then umbrella coverage through Liberty Insurance Corporation to provide an additional $4 million dollars. Following a web of claims, denials, and court cases, Liberty Mutual eventually agreed to a settlement in 2023 for $5 million dollars plus interest in which Liberty Mutual’s team allegedly negotiated the deal. Just one month later, however, Liberty Mutual returned to denying that conduct had occurred that required coverage. The case has continued to be in and out of court with Liberty Mutual denying coverage until early this year when they claimed their coverage was limited to $1 million dollars, NOT $5 million dollars. Berkley, which insured Tops Well, paid the full settlement amount of $5.8 million dollars and now Berkley is pursuing damages against Liberty Mutual for over $6 million dollars and punitive damages.
