August 19, 2025 | Wilmington, DE — MedLegalNews.com — The Delaware Supreme Court has ruled against CVS Health Corp., rejecting its attempt to secure insurance coverage for government, hospital, and third-party payer claims tied to the opioid epidemic. The decision affirms a lower court’s finding that CVS’s insurers, including Chubb and AIG units, have no duty to defend the company against lawsuits seeking reimbursement for economic losses.
Court Relies on Rite Aid Precedent
In its unanimous opinion, the five-member court held that CVS’s policies provide coverage only for claims involving property damage, bodily injury, or pharmacist-related liability. Since the lawsuits filed by state and local governments sought solely economic damages, the justices determined that coverage was not triggered.
Chief Justice Collins J. Seitz Jr. wrote that the policy language was “substantively identical” to provisions previously interpreted in the 2022 Rite Aid decision, which also limited insurers’ obligations to cases involving personal injury.
No Coverage for Economic Losses
CVS argued that its policies should extend to claims by hospitals and medical providers for costs tied to opioid treatment, asserting that such expenses were inherently linked to bodily injury. However, the justices disagreed, ruling that the complaints lacked specific, individualized injury allegations and instead focused on aggregate financial harm.
Because the claims were not predicated on proving bodily injury, the court concluded that CVS failed to show how any factual developments in the underlying litigation could trigger insurer indemnification.
Broader Impact on Opioid Litigation
The decision highlights the continuing legal battle over how opioid-related lawsuits are financed and defended. With the court reaffirming that insurers are not required to defend against claims seeking economic recovery, corporations facing similar litigation may find themselves bearing greater financial exposure.
The ruling comes amid ongoing opioid litigation nationwide, where insurers, healthcare providers, and government entities are grappling with responsibility for billions in crisis-related costs. According to federal estimates, the opioid epidemic costs the U.S. between $53 billion and $72 billion annually.
For further background on how insurance coverage disputes shape litigation outcomes, readers can explore resources from the National Association of Insurance Commissioners (NAIC).
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FAQs: CVS Opioid Insurance Coverage Ruling
Why did the Delaware Supreme Court deny CVS insurance coverage?
The court found that CVS’s insurance policies only cover claims involving bodily injury or property damage, not lawsuits seeking purely economic losses from the opioid crisis.
How does this decision relate to the Rite Aid case?
The court applied the same reasoning used in the 2022 Rite Aid decision, which held that insurers are not obligated to defend cases unless the underlying lawsuits involve direct personal injury claims.
What does this ruling mean for future opioid litigation?
The decision sets a strong precedent limiting insurance coverage for corporate defendants in opioid-related cases, potentially increasing their financial liability.