Tribe can recuperate as much as $ 2 million in virus-related losses and cleanup prices – business insurance
A Connecticut Indian tribe can recover up to $ 2 million in COVID-19 business interruption and cleanup costs under their $ 1.6 billion coverage, a state court ruled.
The Mashantucket Pequot Tribal Nation had, according to the judgment of the Superior Court in Hartford in Mashantucket Pequot Tribal Nation v. Factory Mutual Insurance Co.
The tribe filed the lawsuit in January to seek cover and indict bad faith and breach of contract.
The tribe's all-risk policy included an exclusion of "all costs due to contamination" unless they resulted directly from "other physical damage not excluded by this policy," the ruling said. Contamination is defined "to include various poisons and pathogens and all viruses," it said.
However, the Pequots bought additional coverage for the cost of communicable disease response, including money for cleanups and communications to protect the Pequots' business reputation, as well as for disruptive losses from communicable diseases known as "time element losses," the ruling said.
Those covered $ 1 million for communicable disease response and another $ 1 million for business interruptions, the ruling said.
There is no further coverage under the policy, according to the ruling. "The Pequots are trying to show that costs caused by a virus result directly from other physical damage that is not excluded," the verdict said. But "they cannot escape the fact that their damage was caused directly by the virus and not by some other covered cause," it says.
The ruling states that the Pequots must provide evidence of the costs and amounts covered in the lawsuit and their claim that the relevant property had "an actual unsuspected presence of a communicable disease". The tribe must also prove "what is left of their claims of bad faith and unfair trading practices," the ruling said.
Factory Mutual said in a statement: "We agree with the verdict and are pleased that the judge saw the policy as we applied it."
The tribe's lawyers did not respond to requests for comment.