The Sacramento King's basketball team and its location are among organizations suing FM Global seeking coverage for revenue lost during COVID-19-related lockouts over the past year at risk from the insurer.
On March 11, 2020, the game Sacramento Kings was scheduled to play in New Orleans was suspended and on March 12, the same day that California Governor Gavin Newsom issued an executive order banning gatherings of 250 or more, the National Collegiate Athletic Association 2020 canceled the basketball basketball tournament for men. The tournament would have included games played at the team's stadium, Golden 1 Center, according to last Thursday's lawsuit filed in the U.S. Sacramento District and Sacramento Downtown Arena LLC et al. v. Factory Mutual Insurance Co. et al.
Plaintiff Sacramento Downtown Area, which owns Sacramento Kings Stadium, had purchased the policy, which has a maximum coverage of $ 850 million per event, from FM Global, according to the suit.
In addition to Sacramento Kings Limited Partnership and the stadium operator, other plaintiffs are owners of Kimpton Sawyer Hotel, Sac MUB1
The trial aims at a declaration that organizations have an obligation to cover and accuse breaches of contract and breaches of the implied agreement of good faith and fair trade. It seeks, among other things, criminal damages and legal fees.
FM Global said in a statement that it "values the long-term relationships we have with our policyholders and we are proud to be a leader in the tort service industry. It is unfortunate when legal issues arise because we strongly believe our insurances are clear.
Last year, the Houston Rockets also sued FM Global for COVID-19-related coverage. Others who have filed COVID-19-related lawsuits include the Houston Rockets basketball organization and its location, the Houston Rockets basketball organization.
More insurance and risk management news about the coronavirus crisis here .