Alterra Mountain Co. sues insurance company over $200 million in denied coronavirus losses claims
Ski resort operator says Lexington Insurance paid virus claims in 2015 and 2018 but denied $200 million in 2020 COVID damage "simply because the claim is large."
The Colorado Sun
DENVER — When viruses shut down ski operations at Canadian Mountain Holidays and Ontario’s Blue Mountain Resort in 2015 and 2018, Lexington Insurance Co. paid the resort owners $200,000 in business interruption claims.
But when the coronavirus pandemic shut down the two ski operations in March 2020 — and more than a dozen others owned by Denver-based Alterra Mountain Co. — Lexington declined to cover more than $200 million in lost business for the privately held ski area operator.
“The only reason Lexington handled” the COVID-19 business interruption claim differently than the previous two virus claims “was solely on the ground that the current claim is much larger that the prior claims,” reads a breach of contract lawsuit filed this week by Alterra Mountain Co. in Denver District Court seeking a jury trial to force Lexington to pay claims for $200 million in lost business stemming from the government-mandated shutdown of ski resorts across North America due to the COVID-19 pandemic.
Alterra’s lawsuit, which cites Colorado law allowing it to collect double the covered benefit that was “unreasonably delayed or denied,” argues Lexington declined the loss-of-business claims so it could protect its bottom line.
Alterra says its resorts have paid Lexington “millions of dollars in premiums” for “broad all-risk coverage” in case of physical losses or damage arising from many scenarios, including infectious or contagious disease that prompts a public authority to close a resort. Alterra’s lawsuit argues Lexington has denied coverage “systematically and categorically” for not just the resort operator, but all policyholders that filed pandemic-related business loss claims in North America.
Read more at ColoradoSun.com.
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