AIG, Chubb Beat McKesson in Opioid Defense Costs Insurance Row

American International Group Inc. and Chubb Ltd. units won an opioid insurance battle against McKesson Corp. after a federal appeals court said the insurers have no obligation to cover McKesson‘s legal defense costs in lawsuits brought by government entities.

The government lawsuits against McKesson never alleged an “accident” or unintentional harm required for coverage under the drug wholesaler’s commercial general liability policies, the US Court of Appeals for the Ninth Circuit said on Friday.

“The underlying facts describe purely deliberate conduct,” the court said. “They expressly allege that McKesson intentionally flooded the market with opioids and intentionally flouted safeguards.”

McKesson, ...