The NHL and 20 of its teams claim to have lost more than $1 billion because of the COVID-19 pandemic, and they are suing five of their insurance providers for reimbursement. In a lawsuit filed last June in California Superior Court, the plaintiffs allege their insurance provider breached contract by failing to reimburse them for losses they suffered because of a contagious disease. .
While the claim does not provide a specific amount the plaintiffs hope to recover, NHL and its teams say they have lost more than $1 billion from canceling 189 regular games during the 2019-20 season and banning fans from that season’s knockout stages. In 2020-21, the NHL and its teams suffered additional losses by shortening the regular season to 56 games and limiting fan attendance.
“Fan attendance is a source of income for the plaintiffs,” the NHL statement said, TSN. “A significant source of income for plaintiffs comes from arena-related activities, such as ticket sales, franchises, parking, and arena merchandise sales.”
The NHL and its teams also claim to have spent millions on COVID-19 prevention measures like HVAC systems and zero-touch entrances, and they want defendants – Factory Mutual Insurance Co., Ltd. Cincinnati Insurance Company, Starr Surplus Lines Insurance Company, Lexington Insurance Company and Federal Insurance Company – there are at least some on the bill.
Factory Mutual asked to dismiss the NHL’s claims in a November 12 court petition, citing a lack of “physical loss or damage” to the plaintiff’s property. The NHL and its groups protested on December 16, saying their policies cover lost revenue while a government order restricts access to their assets.
The dispute began shortly after the NHL and its teams allegedly provided a loss report to Factory Mutual on March 13, 2020. Nine days later, according to the NHL, Factory Mutual told the federation about the incident. presence of COVID-19 at a covered location. does not constitute “physical damage of the type insured.”
This is not the only legal battle related to COVID between sports organizations and insurance companies. NCAA Reportedly Raised $270 Million After Cancellation March Madness in 2020, and that same year MLB and 30 of its groups have filed lawsuits against three insurance companies over the denied claims.
https://www.cbssports.com/nhl/news/after-claiming-1-billion-in-losses-the-nhl-and-20-teams-sue-insurance-companies-over-covid-related-denials/ After $1 billion in damages, NHL and 20 groups sue insurers over COVID-related denials