Caesars Entertainment Sues Insurers Over $2 Billion in COVID-19 Losses

Caesars Entertainment, a prominent Nevada-based company, has taken legal action against a group of insurance companies and underwriters. The lawsuit, filed in Nevada’s Clark County District Court on March 19, seeks to recover $2 billion in denied claims due to COVID-19 business losses.

The lawsuit alleges that the insurance carriers violated the terms of the policies under which Caesars properties have been insured nationwide. According to a Securities and Exchange Commission (SEC) filing, Caesars spent over $25 million in premiums alone during 2020 on “all risk” policies for its more than 50 venues across the country.

Under these policies, Caesars is covered for any and all risks except those “explicitly limited or excluded by the terms of the policy.” The lawsuit emphasizes that the policies at issue do not exclude loss or damage caused by a virus or pandemic conditions. This is not the first such effort by a casino-entertainment corporation to recoup losses attributable to the coronavirus outbreak. Last year, Treasure Island and Circus Circus owner Bruce Ruffin sued its primary insurance provider, AIG, over $500 million in Covid-related losses. However, that lawsuit was dismissed in February. The potential losses due to the pandemic led one prominent insurance industry group to declare last year that the pandemic was an “uninsurable” situation.