The Long Island company that insured the stretch limousine that crashed three years ago in Schoharie County, killing 20 people, has been declared insolvent and the process of liquidating the company was started by the state. The insurer, Global Liberty Insurance Co. of New York, was put under the control of the acting superintendent of the state Department of Financial Services on Oct. 13. Five days later, the Melville-based insurer, which specialized in providing coverage to taxi and limousine owners, paid out $481,756 to the Albany County Clerk, releasing it from any other liability in the crash.
The insurance proceeds, which went to the families of the victims, added up to about $24,000 per victim.
The state moved to seize Global Liberty’s assets after it was revealed in financial statements that the company was $30 million in the red. The insurer’s finances continued to deteriorate in the years since the crash, although its problems were not directly related to the 2018 crash, according to The Times Union.
Global Liberty has been paying to defend certain members of the Hussain family from civil lawsuits that the families of the crash victims filed in the wake of the crash, including Nauman Hussain. He pleaded guilty in September to 20 counts of criminally negligent homicide and will serve five years’ probation.
Hussain, 31, managed the family’s limo business for his father, Shahed Hussain. The 31-foot stretch Ford Excursion limo was taking a group of friends to a birthday celebration when the tragedy occurred. Federal and state investigators determined the crash was likely caused by brake failure as the Excursion descended a steep section of Route 30, reaching speeds of more than 100 mph. The Excursion careened into a ditch, killing all 18 people aboard, including the driver. Two bystanders, in town for a wedding, were also killed walking across the parking lot.
Source: Times Union