AIG, Chubb Efforts to Avoid McKesson’s Opioid Costs Questioned

A federal appeals court appeared unconvinced by American International Group Inc. and Chubb Ltd.‘s arguments that they have no obligation to pay for McKesson Corp.‘s legal defense costs in opioid lawsuits brought by government entities.

McKesson, the largest US pharmaceutical distributor, has been sued by government entities for overselling painkillers, allegedly contributing to the opioid epidemic. The central question for insurers’ duty to defend drug companies in such cases often hinges on whether the alleged harm was accidental and whether the underlying suits alleged bodily injuries.

The drug wholesaler held a $45 million liability policy with AIG and ...