Markel Insurer Wrongfully Denied Coverage to Execs, Suit Says

A California financial advisory firm sued its former insurer, a Markel Group Inc. unit, for refusing to cover the company’s executives in an arbitration brought by a consulting firm.

Markel American Insurance Co. breached its contract and made a bad-faith denial of insurance coverage, EnTrust Wealth Advisors said in a complaint Wednesday in the US District Court for the Southern District of California.

In the underlying arbitration, EnTrust’s executives were hit with several claims over a botched agreement with consulting firm BxC Partners.

Markel applied a “breach of contract” exclusion in its directors and officers policy to deny coverage, but ...