Travelers Sues to Dodge Investment Bank’s Legal Defense Costs

A Travelers Cos. insurance unit is seeking to avoid paying for a lawsuit brought against a Chicago investment bank by investors in bonds issued to finance the development of a sports complex.

Travelers Casualty and Specialty Insurance Co. of America insured B.C. Ziegler and Co. under a directors and officers liability policy, but it excluded coverage for claims “based upon or arising out of an insured’s performance of, or failure to perform, services for or on behalf of a client or customer,” Travelers said in the complaint filed Monday in the US District Court for the Northern District of Illinois. ...