P. Gioioso & Sons, Inc. v. Liberty Mut. Ins. Co.

The plaintiff construction company, P. Gioioso & Sons, Inc. (Gioioso), purchased lower cost, high-deductible, occurrence-based insurance policies from the defendant, Liberty Mutual Insurance Company (Liberty), for five policy years. These policies required Liberty to pay all claims and then seek reimbursement from Gioioso of the deductible amounts. Additionally, Gioioso was required to post a letter of credit as security for its anticipated financial obligations under the policies.

Gioioso initiated this litigation in 2012, claiming that Liberty improperly inflated the amount of security it…