Ralph Lauren Corp. has brought an action against Factory Mutual Insurance Co. who accuses the insurer has tried to "wrongly joke" its claim for COVID-19 coverage to a "narrow and limited grant of coverage" according to all its risks, when its policy should provide much broader coverage.
New York-based Ralph Lauren's policy, which provides $ 700 million in coverage, includes a "communicable disease response" coverage that enables "cleansing, removal, and disposal of … communicable diseases from insured property," according to the lawsuit filed. in Friday in U.S. District Court in Newark Ralph Lauren Corp. v Factory Mutual Insurance Co.
The communicable disease has a sublimit of $ 1
I the complaint states "Since the policy specifically covers the remediation of damage caused by a contagious disease, physical damage to property caused by a contagious disease" physical cal damage of the insured type "under insurance."
In addition to triggering all insurance coverage risks, the company claims also several other coverages according to the insurance, including "other extra coverages", "coverage of time elements" and "Time extensions for coverage of time elements" , according to the complaint.
The clothing manufacturer states that sales in its brick and mortar stores decreased by 77% during the first quarter of 2020, while wholesale sales decreased by 93% from the same period in the previous year.
“Aware that the policy and others as it provides access to COVID-19 loss coverage in addition to the sublimated communicable disease coverage in place, FMC developed a plan designed to guide its policyholders including Ralph Lauren Corp. at most, on-site sublimated infectious diseases cover for their COVID-19 loss, "the complaint states.
The complaint states that" call points "are provided to the FMIC application adjuster. location, which provides only a fraction of the coverage limits that are otherwise available under the policy.
The complaint accuses FMC of breach of contract and violation of the New Jersey Consumer Fraud Act.
19659002] Johnston, a Rhode Island-based insurance company, said in a statement that it is not "incapable of discussing the subject in the news media because of the legal nature of the matter."
Insurance companies last week made their third straight victory in cases where COVID-19 business interruption alleges when a District of Columbia judge ruled that the forced closure of a dozen restaurants in Washington did not constitute a direct physical loss.
More insurance and risk management news about the coronavirus crisis here . Catalog