CB · News · 20261022N

Litigation and Legal Risk

Chubb Ltd · 2026-10-22 · Importance 31 · Surprise 42 · In source text

Chubb subsidiary Ace American Insurance Co. sued Circa Resort & Casino and CEO Derek Stevens in federal court over coverage obligations. The underlying claim alleges that a security guard attacked an unhoused man outside the Las Vegas property. Ace American argues that an abuse-and-molestation exclusion in the excess umbrella policy bars its duty to defend or pay damages, highlighting coverage litigation risk in commercial liability insurance.

Key facts

• A Chubb Ltd. insurance unit, Ace American Insurance Co., has sued Circa Resort & Casino and CEO Derek Stevens seeking a federal court ruling that it is not obligated to defend them or pay damages in a lawsuit. source
• Ace American Insurance Co. argues an abuse-and-molestation exclusion in its excess umbrella policy bars coverage for the claims in the underlying lawsuit. source
• The underlying lawsuit alleges a security guard attacked an unhoused man outside the Circa property. source

Impact estimates