Bloomberg Law
March 21, 2023, 8:05 PM

Hotel Operator Loses Insurance Row Over Sex Trafficking Claims

Daphne Zhang
Daphne Zhang
Insurance Correspondent

The liability insurers for a Pennsylvania hotel won a ruling allowing them to avoid providing coverage for lawsuits the policyholder faces over sex trafficking claims.

The insurers—Samsung Fire and Marine Insurance Co., Nationwide Mutual Insurance Co. and ACE Property and Casualty Insurance Co.—have “no duty to defend or indemnify against actions arising out of an insured’s criminal conduct related to the sex trafficking of minors,” Judge Chad F. Kenney of the US District Court for the Eastern District of Pennsylvania wrote in his ruling Monday. ACE is a unit of Chubb Corp.

“Here, shielding Policyholders from the consequences of their ...

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