Chubb Sued by Military Housing Firms Over Environmental Costs

A Chubb Ltd. unit was sued by military housing companies, including Corvias entities, for failing to fully pay environmental cleanup claims and defense costs under a pollution liability policy.

Illinois Union Insurance Co. acknowledged coverage for two environmental claims but paid only 23% of one claim and 40% of another, despite the policy providing up to $25 million, the plaintiffs said in a complaint filed Thursday in the US District Court for the District of Rhode Island.

The companies manage privatized military family housing at Fort Bragg, N.C., under a federal program that allows private entities to own and operate ...