, one of the largest gaming companies in the United States owning more than 50 properties globally, in US federal court in the District of Nevada. The complaint alleges that each of the named insurers provided “all risk” coverage to Caesars Entertainment but have not provided any compensation to it during the pandemic.
The complaint further states that the pandemic has devastated Las Vegas’ economy, and Caesars has lost more than $2 billion in sick payments to employees and hotel cancellations since the pandemic began.
Other businesses that have sued their insurance carriers during the pandemic have largely been unsuccessful. Many insurance policies have added virus exclusions or waivers to their policies following the SARS outbreak in 2002. However, Caesars notes that such an exception is not present in their own policies, which provide that all risks are covered unless they are explicitly disclaimed. This “all risk” policy comes at the cost of more than $25 million per year in insurance premiums. Caesars further argues that their insurance carriers added virus exclusion clauses to their insurance policies for the 2020-2021 term, establishing that such exclusions did not exist prior to that term year.
Despite the relative complexity of the case, with dozens of named insurance companies and other defendants, Caesars Entertainment is primarily proceeding on a simple breach of contract action, seeking damages and a declaratory judgement regarding the policies. The suit also seeks relief under Nevada’s Unfair Claims Practices Act.