Chubb Unit Sues Over Coverage for Diocese Sex Abuse Litigation

A Chubb Ltd. unit sued a California diocese, asking the court to clarify whether the insurer had to cover defense and judgment costs in underlying suits alleging childhood sexual abuse.

Westchester Fire Insurance Co. insured the Diocese of Orange in Garden Grove, Calif., under a series of commercial umbrella policies from 1981 to 1984.

Coverage under those excess policies’ is only triggered once the underlying policies have been exhausted, Westchester Fire said in a complaint filed Thursday in the US District Court for the Central District of California.

The diocese has argued the excess insurer should “drop down” and provide ...