Ski Resorts Operator Sues Insurer Over $200M In Denied COVID Losses Claims

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.

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