A Connecticut casino and resort operator has lost its bid to obtain insurance reimbursement for business losses due to the COVID-19 virus.
Factory Mutual Insurance Co. (FMI) has succeeded in having the resort’s COVID-19 suit against it dismissed.
The Mohegan Tribal Gaming Authority, which operates the Mohegan Sun casino and resort in Uncasville, had sought payment under its FMI commercial property policy for “millions of dollars” in business losses it said it suffered as a result of having to close its doors for about two weeks in 2020 because of the virus.
The tribal authority sued FMI a year ago alleging breach of contract and bad faith for refusing to cover the business losses.
However, the state Superior Court in Hartford this week dismissed the suit, agreeing with FMI that the tribal authority failed to show that the virus caused any physical loss or damage to its property as required by the commercial policy.
The ruling by Judge Cesar Noble is in line with the majority of rulings that have sided with insurers in their denials of COVID-19-based claims for business interruption losses.
Topics Profit Loss
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