In a move that adds another layer of complexity to ongoing sexual abuse lawsuits against the Salvation Army, Westchester Insurance, a division of Chubb, has sought declaratory relief concerning its insurance coverage obligations. Central to the dispute is the question of coverage order: Westchester argues that the claims of the John Doe plaintiffs activate the primary policies of TransAmerica and Industrial Indemnity. According to Westchester, these primary policies must be fully exhausted before its own excess coverage obligations kick in.
The legal action was initiated in the Central District of California, placing pressure on TransAmerica and Industrial Indemnity to respond to the coverage claims. This case underscores ongoing tensions between insurers over the sequencing of coverage in complex liability cases.