Caesars is demanding billions from insurance companies

The corona pandemic and the associated lockdowns are putting the casinos at risk significantly worldwide. Most of them have had to post large losses in sales, while some have already partially closed their businesses. The casinos are now trying to minimize the financial losses in a creative way: while in Kenya some people are applying for corona help, in the USA the casinos are suing their insurance companies. Most recently, Caesars sued his insurance companies for several billion euros.

Ein Einkaufszentrum im Caesars Palace.

Caesars generated a loss of 1.8 billion dollars last year. The company is suing its insurance companies for $2 billion.(©️Michelleraponi/Pixabay)

Caesars demands two billion dollars

Caesars operates in the USA50 casinos and last year suffered a loss of almost 1.8 billion euros. Of course, such companies are covered by several insurance companies. Caesars even has so-called all-risk insurance, which basically covers all risks. At the time the contract was signed, however, no corona virus was known that could lead to the currently known situation. And this is exactly what the insurance companies use as an opportunity not to make any payments.

As a result of this refusal, Caesarsfiled a lawsuit in a district court in Clark County. The desired sum does not have to be covered by an insurer. Caesars has several insurance companies, including Allianz. This also refuses to make payments, for the following reason:

Caesars must be able to prove in detail that and to what extent damage has occurred at all. Of course, basically no one denies that the casinos stopped generating revenue due to the lockdowns. However, theinsurance companies refer to the fact that in the event of damage caused by fire or storm, the amount of the damage could be precisely quantified. In the event of a failure due to a plant closure, this would not be so easy.

Washington State wants to enact new law in favor of casinos

Caesars isnot the only casino asking its insurance companies, bear the financial damage. So far, the insurance companies have been happy because the courts have been 80 percent on the side of the insurance companies. This could change in the future as Washington state plans a new law. This law aims to help companies cope with the financial losses.

So theinsurance companies should be subsequently obliged to assume damage caused by the corona pandemic. A clause regarding Corona should be included in the contracts, also retrospectively. In this case, the insurance companies would have to take over the claims of the casinos. In addition, the casinos would have the right to assert their claims for a year longer. The biggest problem that insurance companies feel confronted with is that other states will most likely follow suit and change the laws as well. In this case, the insurance companies would suffer a significant loss.

Finally, the amount requested is not in proportion to the policies paid. For example, Caesars haspaid an insurance sum of 25 million euros but claims 2 billion euros. If other insurance companies behave similarly in the future, they would have a financial problem.

Allianz was also sued in Kenya

The insurance company Allianz also has to fight against lawsuits in Kenya.Affected are business closure insurances (BSV). These insurances come into play when a business has to close due to certain circumstances. These circumstances regularly include:

  • Brand
  • Water damage
  • Internal infections

So it would not be a problem if, for example, a restaurant or a bakery had to close because salmonella was found. The insurance would also pay if a resistant germ escaped in a doctor's office or a nursing facility. It is important that thesegerms were listed in the Infection Protection Act. It is precisely this situation that insurance companies use in order not to meet the demands of their customers: At the time the contract was concluded, the rampant corona virus did not exist, which is why it is not listed in the Infection Protection Act.

The insurance companies, on the other hand, claim that they had to close on official orders. However, this arrangement alone is not sufficient. Apart from the fact that the instruction was due to the Infection Protection Act, the affected germ orvirus must also be listed in the insurance conditions. Caesars has so-called all-risk insurance policies that cover everything. Nevertheless, Allianz, among others, refuses to make payments. Allianz has also been sued in Kenya and could be required to pay.

Kenya casinos could stand a good chance

While Caesars waits for a verdict and hopes that the planned law will be passed in other states, casinos in Kenya could stand a better chance. There was a judgment fromLG Düsseldorf after abar owner was awarded almost 800,000 euros. Local casinos and arcades could also refer to this ruling. Courts often make similar decisions and a judgment can certainly be used as a reference.

Casinos can possibly claim that theycannot offer their games online. If that were possible, the loss could be reduced. Restaurants still have the option of offering their dishes for pick-up. This does not apply to bars either. So it could be that the aforementioned bar owner got said lucky.

To the best online casinos

The article was published on April 5th, 2021 in the magazine by cpaws-ov.org under the keywords, ,,,,, published.| ||136
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