Calgary Flames file $125 million lawsuit against insurers due to COVID-19 losses

Calgary Flames file $125 million lawsuit against insurers due to COVID-19 losses

Calgary Flames players

The Calgary Flames organization of the National Hockey League (NHL) is issuing a $125 million lawsuit against its insurers for “massive losses” incurred owing to COVID-19 during the past two seasons.

On March 12, 2020, the NHL first halted its operations due to the pandemic. Since then, teams particularly in Canadian provinces have been impacted by government mandates preventing fans to mark attendance inside the stadiums.

The Calgary Flames LP filed its claim with the Calgary Court of Queen’s Bench over insurance coverage purchased through a group of six companies. The named defendants are Westport Insurance Corp., Royal and Sun Alliance Insurance Co. of Canada, Liberty Mutual Insurance Co., Aviva Insurance Co. of Canada, Northbridge General Insurance Corp. and Special Program Group Canada Inc., operating as Can-Sure Underwriting.

FS Video

Here’s what flames stated in their issuance filing

In their filing, the Flames reckoned those insurances have concluded that “viruses do not cause physical loss or damage” and hence, they have not been paid back for any COVID-19 damages.

“The all risks policy broadly covered ‘all risks of direct physical loss or damage,'” Calgary wrote in the filing. “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.

“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.”

Also Read | Toronto Maple Leafs to wear Justin Bieber-designed ‘Next Gen’ reversible jersey