Circus Circus Casino has filed a lawsuit against insurance company AIG for damages exceeding $75m in the United States District Court for Nevada, arguing the operator’s AIG insurance policy failed to cover “all risks” as specified during the novel coronavirus (Covid-19) crisis.
The operator entered into an insurance agreement with AIG starting in December 2019 providing coverage of up to $500m to Circus Circus against “all risks of direct physical loss or damage to insured property from a covered cause of loss”.
A “covered cause” in the policy refers to any that is not specifically excluded.
The operator said that a “highly contagious disease for which there is no known vaccine” was not excluded, nor were government stay-at-home orders. The policy came to a cost of $1.6m per year.