Insurer Sues Hotel Franchisees Over Sex Trafficking Litigation

Jan. 27, 2026, 7:36 PM UTC

An RLI Corp. insurance unit sued hotel licensees that operated a Ramada Inn in Philadelphia, arguing it has no further obligation to provide insurance coverage for human trafficking litigation after paying $100,000 in defense costs.

In a complaint against Eighty Eight LP and Eight Inc. filed Monday in the US District Court for the Eastern District of Pennsylvania, Mt. Hawley Insurance Co. is seeking a court declaration that it exhausted its coverage obligations under a commercial general liability policy after paying the maximum allowed under a limited assault or battery endorsement.

The victim in the underlying suit said she was ...

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