Fairfax Unit Sues Background Check Firm Over Credit Report Case

A Fairfax Financial Holdings Ltd. insurance unit sued a company performing background checks, seeking a court ruling that it has no duty to defend or pay claims in a job applicant’s Fair Credit Reporting Act case.

Multiple policy exclusions bar coverage for the underlying proposed class action against Interstate Background Research Inc., Fairfax’s Crum & Forster Specialty Insurance Co. said in a complaint filed Tuesday in the US District Court for the Central District of Illinois.

The plaintiff in the underlying suit alleged he lost a job opportunity with American Income Life Insurance Co. after Interstate provided an inaccurate background ...