Caesars Entertainment is seeking court action against a number of insurance providers because they are refusing to pay out on COVID-19 losses worth more than $2 billion.
Caesars Entertainment invested $25 million in premiums for “a top-of-the-line, at-cost policy portfolio” that agreed to cover “all risk of physical injury or harm,” according to the firm.
Some of the country’s most well-known insurance firms are claimants in the lawsuit, including Allianz, Chubb, Aspen, and Lloyds of London. The biggest casino operator in the US claims it purchased property insurance to protect against “any possibility of physical loss or damage” that may cause a business interruption.
The majority of policies do not compensate for loss or damage resulting from a virus or pandemic. Hundreds of businesses from a variety of markets, including Treasure Island and Circus Circus director Phil Ruffin, have tried their luck against unyielding insurance companies.
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 are refusing to pay the company’s losses which 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.