Chubby definitely wasn't working with the government. He was a bodyguard. Probably told a million times if somebody shoots at Colombo to take them out immediately. No hesitation. He just did his job. Not smart with a dozen cops right there but he got away with it in the chaos somehow.
That poor guy probably shit his pants when Colombo got shot! He probably thought he would get hit for not stopping the shooter before the first shot.