Caesars puts pandemic losses at $2B

LAS VEGAS – Casino giant Caesars Entertainment Inc. is putting its losses because of the coronavirus pandemic in 2020 at more than $2 billion, and is suing a long list of insurance carriers it accuses of balking at paying its business interruption costs.

In a lawsuit in Nevada state court, Caesars names 60 insurers it says are rejecting its claims to recoup losses under about $3.4 billion in insurance policies it had for catastrophic business losses.

Robyn Ziegler, a spokeswoman for insurer Zurich NA, said it was not her company’s practice to comment on litigation.

Allianz Global Corporate & Specialty said it is evaluating claims from businesses around the world and will honor COVID-19-related claims “where they are part of our policies and cover is clear.”

“However, many businesses will not have purchased cover that will enable them to claim on their insurance for COVID-19 pandemic losses,” it said.

Caesars was acquired last July by Reno-based Eldorado Resorts Inc., becoming the largest casino owner in the world. It retained the name Caesars Entertainment and operates more than 50 casino properties in 14 U.S. states, including eight Las Vegas Strip resorts.

Its attorneys said in the civil complaint that it paid $25 million in premiums to companies ranging in name from Ace American Insurance to XL Insurance.

“Notably, insurers have made clear that they are not willing to underwrite the risks posed by a pandemic going forward,” the lawsuit said. “This new exclusionary language ... confirms that this risk was covered and not excluded in the all risk policies at issue in this suit.”

The lawsuit was first reported Monday by the Las Vegas Review-Journal, which noted it was not the first of its kind among Las Vegas casino operators.

Circus Circus, owned by Phil Ruffin, has filed court documents to appeal a ruling last month by U.S. District Judge Jennifer Dorsey dismissing a federal breach of contract case filed last July against AIG Specialty Insurance Co.

The Treasure Island casino, also owned by Ruffin, is suing Affiliated FM Insurance Co. on similar grounds. That case is pending in federal court in Las Vegas.

Casinos were among many businesses ordered shut down last year as the coronavirus pandemic became known in Nevada and the other states where Caesars operates.