Foxwoods Awarded $2 Million from Insurance for COVID Losses
Foxwoods Resorts Casino in Connecticut has gone to court over its insurance policy rejecting claims to pay out for losses suffered during the COVID-19 Pandemic. The Resorts Casino was trying to claim $76 million in losses. A Connecticut Superior Court ruled that Foxwoods can recover $2 million from its insurance policy, far less than it had hoped.
Foxwoods Heads to Court
Numerous casinos and other businesses around the United States have all tried to claim funds from their insurance policies, with many having to take the legal route and sue the insurance companies. Foxwood believes that its $76 million claim should be covered under its ‘All Risk’ Policy. Its policy will cover the casino up to $1.6 Billion.
However, its insurance company disagreed and stated that viruses and contamination were not covered by this policy. This lead to Foxwoods heading to court to resolve the dispute. In this situation though, insurance companies have had the upper hand. Insurance companies have prevailed in around 80% of pandemic-related cases that have gone to court.
Foxwood Receives Some Money
Insurance companies claim that claimants need to demonstrate that businesses and properties have been physically damaged by the pandemic. Casinos and businesses having to temporarily close due to the virus does not count as physical damage.
The good news for Foxwoods Resorts Casino is they will at least be coming away with something. While the court did agree that closure due to the virus doesn’t count as physical damage, Foxwoods will receive $2 million. This is thanks to the casino purchasing additional communicable disease coverage. This coverage covers money for clean up operations and communications, as well as communicable disease interruption losses.
Foxwoods Resorts Casino is not the only operator taking insurance companies to court. America’s largest casino operator, Caesars Entertainment, is in the process of suing 60 insurance companies for refusing to pay out. Caesars Entertainment is suing for $2 billion, due to claims being rejected. Caesars spends $25 million on top-of-the-line ‘all-risk’ insurance.