Caesars takes legal stance after insurance companies refuse to pay out on $2bn COVID losses
Las Vegas giant Caesars Entertainment is taking legal action against several insurance companies, who are refusing to pau out over COVID-19 losses worth more than $2bn.
It has launched a lawsuit in the Eighth Judicial District Court of Clark County, Nevada, stating that the insurance companies have not paid anything despite Caesars paying more than $25m in premiums.
Caesars says it bought property insurance coverage to protect against ‘all risk of physical loss or damage’ resulting in interruption to business . Most of the policies don’t exclude loss or damage caused by a virus or pandemic.
The lawsuit stated: “The coronavirus pandemic has had a significant impact on Caesars Entertainment’s and its wholly-owned subsidiaries’ properties, business and employees, as well as the communities where the Company operates and serves. The Company purchased broad property insurance coverage to protect against “all risk of physical loss or damage” and resulting business interruption, unless specifically excluded by policies. However, even though the vast majority of the Company’s insurance policies do not exclude loss or damage caused by a virus or pandemic, the Company’s insurance carriers have refused to pay the company’s losses which are estimated to exceed $2bn. Therefore, on March 19, 2021, the company filed a lawsuit against its insurance carriers, which are named in the complaint. The company’s hope remains for an amicable resolution.
Source: G3 Newswire