Liberty Mutual as One of Ten Worst Insurance Companies in America

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Written by Jeffrey Johnson
Insurance Lawyer Jeffrey Johnson

UPDATED: Jun 29, 2022

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Liberty Mutual, one of the nation’s largest insurers for home, auto and life insurance, was ranked one of the ten worst insurance companies in America by the American Association for Justice (AAJ) for claims handling abuses and bid rigging allegations. To learn more about the AAJ report which names the 10 worst insurance companies in America, click here.

Liberty Mutual’s bad faith insurance practices

According to the AAJ report, Liberty Mutual has been accused of bad faith insurance practices, such as:

  • Denying, delaying and defending. Liberty Mutual hired the New York consulting firm of McKinsey & Associates to help it streamline its business practices. However, like Allstate, Liberty Mutual began denying, delaying and defending claims that could have been easily resolved.
  • Abandoning policyholders. The insurer has been accused of abandoning policyholders in states where it has received claims for hurricane damage such as Florida and Louisiana as well as in various New England states that border the coast.
  • Engaging in fraudulent activity. Liberty Mutual, along with other insurers, was accused of bid rigging fraud with broker Marsh & McLennan to artificially raise insurance rates. While other insurers settled the charges, Liberty Mutual maintains its innocence. survey: 50% or more of Liberty Mutual customers very unsatisfied

According to customer satisfaction ratings on, 50% of Liberty Mutual customers are very unsatisfied with the insurer. Here’s how survey respondents rated the insurers:

Extremely Satisfied: 23%
Very Satisfied: 9%
Somewhat Satisfied: 7%
Unsatisfied: 12%
Very Unsatisfied: 50%

Customers posted the following comments about Liberty Mutual and its subsidiaries on the website:

  • Liberty Mutual finally gave me what was agreed upon in my policy only after a protracted series of phone calls and letters. Their handling of my claim demonstrated their interest in only their bottom line. One employee actually said something like, “I’m sorry we did so poorly in handling this claim. We can’t do anything to make up for the situation. We hope you will continue to insure with us.” He really said that.
  • Denied a claim for water damage after being with them for 20 years without filing one claim! Terrible customer service. Would not recommend to anyone.
  • Dealing with Liberty Mutual Insurance has been one of the most unpleasant experiences I ever had. You can pay your premiums every year but do not attempt to file a claim! You get no assistance whatsoever from their claim’s people. Buy insurance from them at your own risk– a terrible company.
  • Liberty Mutual Long Term Disability coverage is a joke. The only thing they want to deal with is accepting your premiums. They are unprofessional, use deceptive practices, outright lie and do everything they can to make your life a living hell to make you go away! Take my advice, DO NOT become a victim of LIBERTY MUTUAL like I have.

If Liberty Mutual has acted in bad faith regarding your valid insurance claim, contact an attorney whose practice focuses in this area of the law. Consultations are free, without obligation and strictly confidential. Contact an experienced insurance attorney. They may be able to help.

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