The NHL and 20 of its teams are embroiled in a lawsuit against five insurance companies. The league is claiming more than $1 billion in losses that haven’t been reimbursed.
The ongoing lawsuit was filed in June 2021 in the Superior Court of California in Santa Clara, but first surfaced in a TSN report on Wednesday.
- The complaint, which Front Office Sports reviewed, alleged that one insurer, FM Global, offered $2 billion in reimbursement for a catastrophic event. Other insurers also “promised to pay significant amounts.”
- The insurers allegedly denied coverage because their policies only covered events that cause physical damage to properties.
“The COVID-19 virus caused unprecedented physical loss and damage to the Hockey Plaintiffs’ properties, at levels far worse than … many ‘traditional’ natural disasters,” the complaint read.
In December, the NHL and teams rebutted a motion to dismiss — but a decision has not been posted to the case’s online court docket.
“FM Global values the long-term relationships we have with our policyholders,” a spokesperson for FM Global told FOS in a statement. “We strongly believe our insurance policies are clear on the coverage provided.”
An NHL spokesperson noted a league policy that prohibits commentary on ongoing litigation.
Other Leagues Feel The Same
The NHL isn’t the only sports league suing for reimbursements for pandemic-induced losses.