Texas Judge Dismisses Coverage Action Against Zurich; Grants Plaintiff Leave to Replead Claims

DALLAS — A Texas federal judge has dismissed a benefits group’s coverage action against Zurich American Insurance Co., ruling that the group’s claim under an employee wrongful acts policy does not fall within the terms of coverage.

However, in the April 29 order, Chief Judge Sidney A. Fitzwater of the U.S. District Court for the Northern District of Texas granted leave to American Construction Benefits Group LLC to replead its breach of contract and Texas Insurance Code claims.

Zurich insured ACBG under a claims-made policy that covered losses arising from wrongful acts committed by ACBG directors, officers or employees.

ACBG …