Chubb’s Opioid Insurance Loss Opens New Front for Similar Claims

An opioid wholesaler’s insurance win against Chubb Ltd. presents a new avenue for pharmaceutical companies defending themselves in litigation stemming from the opioid crisis to recoup their legal bills.

A federal district court said this month that a Chubb unit must pay for North Carolina Mutual Wholesale Drug Co.’s defense costs in 115 lawsuits from local governments alleging it oversold opioid painkillers to pharmacies. The distributor held private company director and officer insurance with Chubb, which covers a broader category of losses compared with the narrower liability policies.

The decision is one of the first policyholder D&O insurance wins covering ...