Markel Insurance Unit Sues to Duck Investment Firm Arbitration

Arbitration proceedings against a St. Louis securities broker-dealer over faulty investment advice aren’t covered by the firm’s insurance policy, according to a lawsuit filed by a Markel Group Inc. unit.

The arbitration claim is excluded by the professional liability and directors and officers policy issued to Saxony Securities Inc. because it wasn’t first made during the policy period, Evanston Insurance Co. said in a complaint filed Wednesday in the US District Court for the Eastern District of Missouri.

In the underlying dispute, one of the firm’s former financial advisers is accused of making risky investments “riddled with conflicts of interest” ...