Liberty Mutual has backed out of settlements following the overturning of a $1.6 billion judgment it was involved in underwriting. The judgment stemmed from a lawsuit between BMC Software and IBM, with Liberty and other insurers covering parts of the policy. The recent appellate decision in favor of IBM has caused repercussions in the industry, leading to changes in insurance coverage for similar cases. Industry experts like Jason Goldy and Michael Perich have noted adjustments in coverage terms and pricing within the litigation insurance landscape. Despite the challenges, there continues to be interest in writing policies for similar cases. The BMC Software v. IBM case, which involved a significant amount in damages, highlights the complexities of insurance coverage in legal disputes. The market for judgment preservation insurance remains dynamic, with insurers adapting to changing circumstances. IBM’s successful appeal in the case has implications for similar insurance agreements in the future, reflecting the evolving nature of this aspect of the legal industry.
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https://news.bloomberglaw.com/business-and-practice/liberty-insurers-take-hit-on-1-6-billion-ibm-judgment-policy
