The Los Angeles Lakers basketball team filed a COVID-19 business interruption lawsuit against a Chubb Ltd. unit on Monday, alleging that the virus had caused physical loss and damage to its properties, and criticized the insurer for reaping billions in profits while it denied its
Los Angeles Lakers Inc. said they had paid $ 145,052 in premiums for an all-risk policy issued by the Chubb unit Federal Insurance Co. which provided $ 89.4 million in coverage, including $ 47.6 million for business interruptions, according to the lawsuit. i Los Angeles Lakers Inc. vs. Federal Insurance Co. .
The coverage did not include a virus exemption, according to the lawsuit, which was filed in the U.S. District Court of the Central District of California.
The lawsuit follows a lawsuit filed by the Sacramento Kings basketball team last week.
"Coronavirus was physically present in the Staples Center and surrounding properties and caused physical loss and damage to these properties by physically changing their condition, so that extensive physical changes and new protocols for disinfection and prevention of infectious diseases were necessary to make the arena suitable for moving in and not creating a safe environment for fans to participate in, "said the complaint
It said it has" suffered tens of millions of dollars in lost revenue from ticket sales, media rights, sponsorship and other revenue. "
In the lawsuit stated that Chubb, who posted quarterly gross profit from premiums of more than $ 1
“Even worse, it has refused to pay its customers as a policy issue on the orders of its CEO, instead of t drive the false story that losses from COVID are in no way covered by receivables. The trial is forced by the difficult and legally unsustainable costs.
Chubb's Chairman and CEO Evan Greenberg said during a earnings interview in July that “Pandemic coverage was never considered in standard business interruption policies and therefore no premiums were ever charged for these risks.
The trial concerns a declaratory verdict and accuses Chubb of breach of contract, breach of the implied agreement of good faith and fair trade and claims damages and costs.
A Chubb spokesman did not respond to a request for comment.