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Mercer Global Advisors sues Chubb over disputed $1 million retention
The dispute involves Mercer’s professional liability policy, where “related claims” should trigger a single $1 million retention rather than multiple retentions.
Mercer Global Advisors is suing Chubb in Colorado federal court, alleging the insurer wrongly treated two arbitration claims as separate matters and left the wealth manager paying an additional $1 million self insured retention, according to a lawsuit described by Insurance Business.
The complaint says Mercer’s Asset Management Protector professional liability policy carried a $5 million aggregate limit and a $1 million retention, and that the policy defines “Related Claims” broadly, including claims based on or arising from the same or related facts, circumstances, situations, transactions, or events.
Mercer argues that under the policy, defense costs are part of the limits of liability and are applied against applicable retentions, so each additional retention required Mercer to spend more before coverage would respond.
The underlying arbitration issues trace to December 2021, when Mercer acquired assets from another advisory firm, the filing states. Insurance Business reports that two former clients later filed FINRA arbitration claims, Mercer says Chubb initially agreed the claims were related in April 2024, then separated the second claim in August 2024 and required a second $1 million retention, before later grouping a subpoena with the first arbitration claim in June 2025.