Caesars Entertainment, Inc., on Monday filed a report with the US Securities and Exchange Commission revealing it has filed a lawsuit against several insurance carriers.
The suit, which the company filed on 19 March in Clark County District Court, notes Caesars purchased broad property insurance coverage to protect against “all risk of physical loss or damage” and resulting business interruption, unless specifically excluded by policies.
“However, even though the vast majority of the company’s insurance policies do not exclude loss or damage caused by a virus or pandemic, the company’s insurance carriers have refused to pay the company’s losses, which are estimated to exceed $2 billion,” Caesars said in its filing with the SEC.
Caesars told the regulator the Coronavirus pandemic has had a significant impact on Caesars Entertainment’s and its wholly-owned subsidiaries’ properties, business and employees, as well as the communities in which the company operates.
Caesars added, “hope remains for an amicable resolution,” in its SEC filing.
The lawsuit alleges Caesars has paid more than $25m to the various insurance carriers in premiums. The company said it has submitted business interruption claims but has yet to receive payment.
“Caesars is continuing to experience physical loss and/or damage to property and interruption of its business as the pandemic continues, despite taking measures to mitigate the risk associated with SARS-CoV-2 and/or COVID-19,” the company said in its complaint, while asking the court to declare these losses are covered.
Caesars alleges the insurance carriers are in breach of contract and are in violation of the Nevada Unfair Claims Practices Act.
