Circus Circus Hotel and Casino has filed a lawsuit against AIG Specialty Insurance Co. alleging that AIG wrongfully denied coverage for the company’s losses resulting from the COVID-19 pandemic.
The lawsuit was filed by in the U.S. District Court of Nevada. The suit makes breach of contract claims and seeks a declaration that AIG has a duty to cover its losses stemming from the pandemic.
According to the lawsuit, the casino is covered for up to $500 million in physical loss or property damage and $97 million for loss of business income under an “all risks” policy sold by AIG.
“Despite agreeing to cover Circus Circus for all risks of physical loss or damage property resulting from perils not specifically excluded, and Circus Circus’s resulting loss of business income and extra expense, AIG refuses to stand by the insurance policy that it wrote and sold and honor its contractual undertakings,” the lawsuit states. “Instead, AIG relies on sleight-of-hand, distortions of fact and contortions of law to escape from Circus Circus’s covered claim. But no illusion or death-defying feat can alter the plain language of AIG’s policy and the broad all risks coverage that it provides.”
The policy in question has a term of Dec. 20, 2019 to Dec. 20, 2020. Circus Circus paid a $1.6 million premium for the policy.
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