Liberty Mutual Must Defend Larry Nassar Lawsuits Against Gymnastics Organization, 7th Cir. Affirms

CHICAGO — A federal appellate panel has affirmed that Liberty Mutual Insurance Underwriters Inc. must defend USA Gymnastics Inc. (USAG) against sexual abuse claims involving Larry Nassar, ruling that the policy’s wrongful conduct exclusion only applies to the 10 instances for which Nassar was convicted.

However, in the Feb. 25 opinion, the 7th Circuit U.S. Court of Appeals panel remanded the case for consideration of whether the policy’s $250,000 Employment Practices Liability sublimit endorsement caps Liberty’s liability.

Nassar sexually assaulted hundreds of girls and young women during his decades-long involvement with USA Gymnastics Inc. (USAG), the non-profit organization which governs …