A W. R. Berkley Corp. insurance unit sued an Illinois cannabis manufacturer seeking to avoid paying legal costs in a proposed class action alleging the company misrepresented a product as a cannabis concentrate.

Admiral Insurance Co. doesn’t owe coverage to SCCS Solutions Corp. because its liability policy excludes underlying claims alleging bodily injury arising from the consumption of a marijuana product, the carrier said in a lawsuit filed Tuesday in the US District Court for the Northern District of Illinois.

The underlying proposed class action brought by a cancer survivor alleged SCCS Solutions violated Illinois consumer protection laws by misrepresenting …