Wrongful Conduct Exclusion Only Applies to Criminal Convictions in Liberty’s Policy with USAG

Hundreds of gymnasts have filed sexual assault claims against Larry Nassar, former national medical coordinator for the USA Gymnastics since 2016. The athletes along with coaches and gym owners have also sued USAG forcing the organization into bankruptcy. USAG turned to its insurers including Liberty Mutual Underwriters through which the organization had a directors and officers policy. Liberty declined to defend citing a wrongful conduct exclusion. The 7th Circuit Court of Appeals ruled the exclusion only applied to the ten suits for which Nassar was convicted of criminal conduct. Read more about the case here.


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