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MLB suing insurance vendors over denied coverage

Major League BaseballMLB and its teams are suing three insurance providers over the denial of claims made after the industry suffered losses due to the COVID-19 pandemic impacting the 2020 MLB season.

The suit, brought in California Superior Court in Alameda County, alleges that AIG, Factory Mutual and Interstate Fire and Casualty Company have refused to pay on claims “on unsold tickets, hundreds of millions on concessions, tens of millions on parking and millions more on suites and luxury seat licenses, in-park merchandise sales and corporate sponsorships. It also cites over a billion dollars in local and national media losses, plus tens of millions in missed income for MLB Advanced Media. It says all of those losses should be covered by their policies,” reports AP.

“Due to COVID-19, the Major League Baseball entities, including those of the 30 major league clubs, have incurred significant financial losses as a result of our inability to play games, host fans and otherwise conduct normal business operations during much of the 2020 season,” MLB said in a statement to the AP. “We strongly believe these losses are covered in full by our insurance policies, and are confident that the court and jury will agree.”

It is not uncommon for insurance carriers to deny COVID-19-related claims, as many carry exemptions that specifically mention viruses as a reason for a denial. However, MLB is arguing that it does not have such an exemption, and that the three carriers have no legal reason to deny the claims.

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