Island View Casino sues insurer for COVID coverage

November 23, 2020

Mississippi resort wants $10m for business losses, $90m in punitive damages

Island View Casino Resort in Gulfport, Mississippi, has filed a lawsuit against Westchester Surplus Lines Insurance Co., alleging the insurer is not honoring its cancellation coverage policy.

The Mississippi Gaming Commission ordered the casino to be shuttered from March 16 to May 21. Gulfside Casino Partnership, the resort’s parent company, said this led to a loss of $46.2m in revenue.

The casino has cancellation coverage, for which it pays an annual premium of $408,268. Island View asserts it was unable to accept guest bookings due to “a contagious or infectious disease at an insured location, as determined by a public or civil authority,” and that the loss is covered “whether or not physical damage occurs to the property.”

The resort carries $10m in coverage for cancellations, which the insurer is refusing to pay. The suit asks for the $10m for alleged breach of contract and negligence, plus $90m in punitive damages, attorney fees and interest.

In July, Crawford Global Technical Services, an insurance adjuster working with Westchester Surplus Lines, sent a letter to the casino group outlining its arguments why the losses were not covered by the resort’s policy. The letter stated in part, “As a general matter, the policies afford coverage only when there has been direct physical loss, damage or destruction. In the absence of such damage, there is not coverage.”

In addition, Crawford said that communicable disease is not covered per language in the casino’s policy.

Westchester Surplus Lines is headquartered in Alpharetta. Georgia.Global Technical Services is part of Crawford & Company, based in Atlanta.


Product Spotlight

Bragg Gaming Group

Bragg Gaming Group is a global content-driven iGaming technology provider, serving online and land-based gaming operators with its proprietary and exclusive content and cutting-edge technology.

John Connelly - Interblock preparing to launch online by the end of year

John Connelly, the Global CEO of Interblock, joins the Huddle to talk about:
- The company's conversion to the online space
- The performance of ETGs
- Interblock's new philanthropic efforts
- The trend of companies going private
- And more!

Michael Hershman - Dispelling casino 'myths:' New York needs to lose fear of the unknown

Michael Hershman, CEO of the Soloviev Group, joins Tim Poole on the Huddle to put forward his case that the Freedom Plaza is the way to go for one of New York's casino licences. He fields a variety of questions - not shying away from any of them - on why 'myths' about casinos and a fear of the unknown should be dispelled, as well as acknowledging the strength of rival bids and discussing opposition to the project.

As the Tribal gaming sector congregates once more in the Golden State, is it too cliché of me to suggest we are heading for a golden era of Tribal gaming? With the industry set to meet at the Indian Gaming Association t...

From The Top: Will youth be served by Sports Betting?
Two recent interviews in our Huddle podcast revealed to Las Vegas correspondent Brian Joseph just how young sports betting entrepreneurs are becoming.
The Global Gaming Awards: Rewarding Excellence
The 10th edition of the Global Gaming Awards took place in Las Vegas last year. Gaming America looks back... and ahead to this year's.
Preview: Indian Gaming Tradeshow & Convention
Gaming America looks ahead to the 2024 Indian Gaming Tradeshow & Convention and what attendees can expect when they arrive at the Anaheim Convention Centre.
888 and the US Market: A cautionary tale
Gaming America explores the risk of resting on your laurels and the challenge of remaining relevant in a rapidly expanding market.