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- Ace American Insurance Co. (a Chubb subsidiary) filed a lawsuit in Nevada federal court seeking a declaratory judgment to deny defense costs and damages to Circa Resorts LLC and CEO Derek Stevens under a $10 million excess umbrella policy.
- The insurer argues that an abuse-and-molestation policy exclusion relieves it of liability regarding an underlying civil lawsuit stemming from a July 2022 physical assault by a casino security guard outside the downtown Las Vegas resort.
Ace American Insurance Co., a Chubb unit, sued Circa Resorts LLC and CEO Derek Stevens in Nevada federal court on Oct. 20 over insurance coverage.
The insurer seeks a declaration that it has no duty to defend or pay damages in an underlying lawsuit alleging that a security guard attacked an unhoused man outside Circa Resort & Casino, according to RG.org. The coverage dispute does not determine whether those allegations have merit. Meanwhile, as land-based properties handle complex liability issues, gaming operators increasingly rely on digital diversification through online casino offerings to balance operational risks.
Ace Cites Policy Exclusion to Deny Coverage
Ace issued an excess umbrella policy to the casino operator. The insurer says an abuse-and-molestation exclusion bars coverage for the underlying claims, RG.org reported.
The federal action asks a judge to determine whether the policy applies. It is separate from the lawsuit concerning the alleged attack, and the applicability of the exclusion remains unresolved.
RG.org said it could not independently review either the insurer’s complaint or the underlying lawsuit. It also could not confirm the security guard’s identity or the status of any related criminal case. As commercial properties manage public-facing operations, maintaining strict safety protocols and promoting responsible gaming practices remain central to mitigating liability risks across physical and digital venues.
Nevada Docket Shows Summons Issued
The case, Ace American Insurance Co. v. Circa Resorts LLC, is No. 2:26-cv-03439 in the U.S. District Court for the District of Nevada.
According to the docket information reported by RG.org, a summons was issued on Oct. 21. The docket showed no response from Circa or Stevens as of that date. Whether either defendant files a response, and how the court interprets the policy exclusion, remain open questions.
Circa opened on Las Vegas’ Fremont Street in October 2020. Derek Stevens owns the resort with his brother, Greg Stevens.
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Source: As reported by RG.
