NHL, golf equipment sue insurers for refusing to cowl over $1 billion COVID-19-related losses


Factory Mutual Insurance Company, Starr Surplus Lines Insurance Company, Lexington Insurance Company and Federal Insurance Company were named as defendants.

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In the statement received from TSN, the NHL and its clubs said the losses were due to the cancellation of 189 regular season games in 2019-20 and the exclusion of fans from this season’s playoffs, which resulted in a “bubble “Were carried out.

Plaintiffs also alleged that they suffered losses from the shortened regular season, which cut each team’s schedule to 56 games, and limited attendance in 2020-21. Each club’s full schedule includes 82 games.

“Fan visits are an elixir of life for the income of the plaintiffs,” says the lawsuit. “A significant source of income for the plaintiffs comes from arena-related activities such as ticket sales, concessions, parking spaces and sales of goods in the arena …”

The league and hockey clubs also said they had spent millions making sure their arenas were COVID-19 safe for spectators – including installing HVAC systems, physical barriers, and touchless entry and payment systems.

In a November 2021 court motion, also filed by TSN, Factory Mutual moved the league’s claims to be dismissed, citing the lack of “physical loss or damage to plaintiffs ‘property, which is a threshold requirement for plaintiffs’ coverage”.

The NHL and its teams appealed the motion last December, arguing that their policies “will cover revenue if a government order restricts access to these insured arenas due to property damage within five miles of hockey plaintiffs’ property,” regardless of whether the hockey stick “” The property itself is damaged. “

Neither the NHL nor their teams gave precise details of their financial losses, according to TSN.

The lawsuit is the latest in a series of COVID-19-related litigation between sports organizations and insurance providers. Last year, Major League Baseball (MLB) and all of its 30 teams sued three of their insurers for denied claims.

Continue reading: MLB throws pandemic lawsuit Curveball at insurers

Also in 2020, the National Collegiate Athletic Association (NCAA) reportedly managed to raise $ 270 million in insurance payouts following the cancellation of its March Madness signature tournament.

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