Miami casino sues insurance companies

The casino claims the insurance policies cover the closure because of Covid-19 restrictions.
The casino claims the insurance policies cover the closure because of Covid-19 restrictions.

A Miami casino has filed a lawsuit against insurers demanding they cover financial losses caused by the Covid-19 pandemic.

US.- Magic City casino in Miami is suing four insurance companies demanding they cover financial losses caused by the closure of the venue during Covid-19 lockdown measures.

The lawsuit, filed last week at federal court in South Florida, claims the four insurance companies wrongfully denied coverage for “business interruption” losses. The insurers in question are AXA XL Insurance Group, AXA subsidiary Indian Harbor Insurance, Hallmark Specialty Insurance and Ategrity Specialty Insurance.

According to the lawsuit, they sold the casino “all-risk” property insurance policies that included cover for business-interruption losses. The casino said it is not suing other insurers that sold policies that specifically excluded coverage for events such as viruses.

“The policies are all-risk. In an all-risk insurance policy, all risks of loss are covered unless that are specifically excluded”, the lawsuit says.

Magic City says it could not operate because of orders issued by Governor Ron DeSantis and local officials. It said the disputed policies contain identical sections about providing coverage for losses resulting from an “order of civil or military authority.”

It said: “As a result of the presence of Covid-19 and the closure orders, the plaintiff … sustained a suspension of business operations, sustained losses of business income, and incurred extra expenses. Plaintiff has also sustained business income losses due to direct physical loss or physical damage at the premises of dependent properties.”

The insurers had not yet responded to the claims as the time of press.

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