Tens of thousands of businesses have lost revenue from the effects of COVID-19.
Sports teams are no exception.
Like other businesses, sports team’s insurance policies may also have verbiage that precludes pandemic coverage.
A recent ‘Insurance Journal’ article reported that Tilman Fertitta, the billionaire owner of the Houston Rockets, is suing Affiliated FM insurance. One can only assume this is a result of a denied claim.
Court filings stated Fertitta paid around $719,000 in annual premiums for more than $400 million in business-interruption insurance. Per the fliings, he said the policy did not specifically exclude pandemic risks.
Steven Zenofsky, of FM Global, declined to comment on matters concerning the suit.
Stakes are High for Insurers
This is one of thousands of COVID-related Business Interruption claims in the US.
US businesses could face total losses of $431 billion per month according to the American Property Casualty Insurance Association. By comparison, total covered losses for 9/11 terrorist attacks was 47 billion – one-ninth of estimates for monthly COVID losses.
Chubb Ltd. CEO Evan Greenberg suggests that the pandemic is the single largest event in insurance history.
The Average Business Owner
So what does all this mean for the average business owner?
Small to mid-size businesses have had to shift to ‘survival mode’ over the past few months. Some are starting to see daylight, while others are wondering if 50% capacity will be the ‘new normal’.
When it comes to COVID-related losses, staying informed may be the best approach. A few questions you can occasionally research…
Are state or local governments passing laws concerning pandemic-related coverage matters?
How are COVID-related court cases getting settled?
Is my policy similar or different from others that are being scrutinized in legal proceedings?