Flames announce lawsuit against insurers over COVID-19 losses

The Calgary Flames reportedly has launched a $125 million lawsuit against its insurers caused by losses due to COVID-19.

According to the Calgary Herald, the team filed a claim in Calgary Court of Queen's Bench, explaining that the coronavirus fits within the coverage that it had purchased from six different insurers.

«Calgary Flames (limited partnership) bought — at significant expense — a best-in-class 'all risks' business interruption insurance policy from the defendants,» the claim states.

«The all risks policy broadly covered 'all risks of direct physical loss or damage.' The all risks policy promised to indemnify Calgary Flames LP against loss of revenue and certain other expenses if it could not use its arenas or other insured properties due to the impact of external physical peril,» it states.

«These covered perils include known and unknown risks, including noxious substances that render arenas unusable. COVID-19 and the COVID-19 virus were precisely among the perils and risks covered. In short, Calgary Flames LP purchased the all risks policy to cover the losses that it could suffer as a worldwide series of physical catastrophes like those brought on by the COVID-19 pandemic.»

The six defendants defined in the lawsuit are Westport Insurance Corp., Royal and Sun Alliance Insurance Company of Canada, Northbridge General Insurance Corp., and Special Program Group Canada Inc. (Can-Sure Underwriting).

The main idea surrounding the lawsuit is the fact that insurers chose not to include a pandemic exclusion that other insurers used to exclude coverage for losses related to a virus or pandemic. The insurers instead had contamination exclusion or pollution exclusion that did not disallow coverage for the types of losses the Flames suffered due to COVID-19. Along with this, the Flames believe the pandemic protocols placed upon the arena by health officials caused the Saddleome to be unusable for its proper use.

«The purpose of this arena is to allow thousands of fans to gather inside to watch events, consume food and beverages, and vocally cheer on sporting or other events, sometimes with multiple events being hosted each day.»

None of the defendants have responded to the unproven allegations in the Flames lawsuit to this point.

calgaryherald.com

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