Travelers Sued by Abuse Victims Claiming NY Law Payout Delay

Four men who were sexually abused as children by a former Poly Prep Country Day School employee filed a lawsuit Tuesday against two insurance companies for failing to defend and indemnify the school in their underlying abuse case.

Gray Montague and three Doe plaintiffs allege in their complaint filed in US District Court for the Eastern District of New York that Travelers Casualty and Surety Co. and North River Insurance Co. breached insurance contracts by refusing to pay defense costs or settle within policy limits.

The plaintiffs say that “grossly deficient and outrageous insurance coverage positions taken by many insurance ...