Liberty Mutual Insurance Co. has won a case against a company that refused to pay $3.64 million in additional workers’ compensation premium after a payroll audit revealed it had more high risk employees than originally claimed. The U.S. District Court in Houston had granted Liberty Mutual a summary judgment and ordered the aircraft ground handling firm Servisair to pay the additional premium. The U.S. Circuit Curt of Appeals for the Fifth Circuit last week upheld that ruling. The three-judge appeals panel rejected Servisair’s claims that the policy was a “mutual mistake” and that the terms were ambiguous.
Further coverage from Insurance Journal here.