MLB sues insurance providers, cites billions in virus losses
By admin - 2018-08-07 10:24:10
With coronavirus still being a major issue, Major League Baseball and all 30 of its teams are suing their insurance providers for billions of dollars in losses, which is due to the pandemic. Here are the highlights:
- While the suit was filed in October in California Superior Court in Alameda County, The Associated Press got wind of it in December. Different provides, such as AIG and Factory Mutual have refused to pay claims made by MLB despite the league’s “all-risk” policy purchases.
- The league claims losses, which includes billions of dollars on unsold tickets, concessions, parking, merchandising, sponsorships, and more. They claim that the losses should be covered by their policies.
- Not to mention, spring training was cut and fans were barred from stadiums. The season also shortened to 60 games (down from the normal 162).
- Although, there was a capacity of 11,000 per game for the National League Championship Series and World Series at Arlington, Texas, there were very limited fans for the postseason games.
- The MLB said that because of the pandemic the entire league lost significant revenue in the 2020 season. As a result, they said, “We strongly believe these losses are covered in full by our insurance policies, and are confident that the court and jury will agree.”
- Even with 1,400 cases filed, many insurers said the virus doesn’t constitute physical loss or property damage.
- MLB says otherwise because the droplets that land on surfaces and in the air virus “has caused and will continue to cause direct physical damage to physical property and ambient air at the premises.”
- It’s been a difficult time because many teams have laid off front office employees in response to the pandemic, and even top players in free agency have been cut off as a way to save millions of dollars.
- MLB hasn’t commented on spring training or the 2021 season.