Scientology Sued Over Insurance
Date: November 4, 1994
Liberty Mutual Insurance Co. claims in a lawsuit filed Monday that the church's Flag Service Organization owes $378,873 in premiums and fees assessed after an audit turned up employees who had been covered under the policy but were "not yet paid for."
"The church's insurance agent has been in frequent good faith negotiations with Liberty Mutual to determine what amount we actually owe on workmen's compensation," church spokesman Brian Anderson said Thursday. "Liberty Mutual's figure is incorrect as the true figure is much, much lower. However, we have expressly stated our willingness to pay what's owed once a correct figure was established."
Anderson also said the church was surprised by the lawsuit. "Liberty Mutual gave no indications to our agent of dissatisfaction with our negotiations," he said.