Businesses take certain steps to protect their brand, including paying for insurance to cover losses due to damage, natural disasters, and a host of other issues. The recent COVID-19 pandemic has played a major role in income losses for many companies and insurance companies are refusing to pay up. Caesars Entertainment is one example of a gaming company that has decided to take action after an insurance company has not paid up due to losses incurred.
Several insurance providers have been named in a lawsuit filed by Caesars Entertainment. The company is asking for $2 billion to cover lost profits due to the government shutdown of casino venues. The lawsuit was field by Friday in Las Vegas, Nevada via the Clark County District Court. While the filing was completed in Sin City, it covers all 50 of the properties owned by Caesars in the US.
Caesars says that it purchased broad insurance protection and the plan should cover the pandemic losses. The insurance covers all risk of physical loss or damage due to a business interruption. The shutdowns the casinos faced were pandemic induced and should be covered by the plans, says the operator.
The chance that Caesars will win their case if low. Last year, a lawsuit was filed by the owner of Circus Circus and Treasure Island. The filing was like Caesars and called for all risks policies to pay up for damage incurred due to the shutdowns.
The lawsuit by Phil Ruffin said that the impact of the virus is not specifically excluded from coverage, so it should be included. The policy was purchased by Ruffin for $1.6 million and provided up to $500 million in damages.
A court recently ruled in favor of the insurance company in the case of Ruffin and it might be the same ruling in the Caesars case. Only time will tell if Caesars will be able to receive payment for losses or if the same ruling will apply.
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