Many businesses have been forced to close during the Covid-19 pandemic and have had significant lost business.
Casino Circus Circus in Las Vegas, being one, has turned to its insurer AIG Specialty Insurance Co. seeking payment from its business interruption coverage under its “all risks” policy.
IG has denied liability forcing the casino to sue.
In its complaint, Circus alleges that its policy provides for up to $96,774,307 in coverage for loss of business income, for which it paid a $1.6 million premium.
It says its entitled to payment as the Corona Virus is a “Covered Cause of Loss” defined as “a peril or other type of loss, not otherwise excluded under this Policy.”
Apparently, the only exclusion that comes close to a definition of a pandemic is, according to Circus Circus, “pollution or contaminants.” Circus Circus claims that that exclusion is not applicable and is seeking payment up to the policy limits.
This case could be a turning point for other companies having the same or similar policies.
Keep your eye on it.
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