LAS VEGAS (KLAS) — A holding company for Circus Circus Hotel & Casino on the Las Vegas Strip is suing its insurance company. In the court documents obtained by 8 News NOW Tuesday, Circus Circus LV, LP said it filed the lawsuit against American International Group (AIG) because the company refuses to cover losses Circus Circus endured because of the coronavirus pandemic.
In the Circus Circus LV, LP lawsuit against AIG the court documents state:
- This diversity action for breach of contract and declaratory judgment arises out of Circus Circus’s claim of insurance coverage under an “all risks” insurance policy sold by AIG to Circus Circus.
- Despite agreeing to cover Circus Circus for all risks of physical loss or damage property resulting from perils not specifically excluded, and Circus Circus’s resulting loss of business income and extra expense, AIG refuses to stand by the insurance policy that it wrote and sold and honor its contractual undertakings. Instead, AIG relies on sleight-of-hand, distortions of fact, and contortions of law to escape from Circus Circus’s covered claim. But no illusion or death-defying feat can alter the plain language of AIG’s policy and the broad all risks coverage that it provides.
Read the full 16-page lawsuit below:
AIG Specialty Insurance Company is an Illinois insurance company with its principal place of business located in the State of New York. 5. AIG is authorized to do business and issue insurance policies in the State of Nevada.
According to the lawsuit, as used in the policy’s insuring agreement, the term “physical loss” is separate, distinct and has an independent meaning from the term “damage.” In the policy, the term “Covered Cause of Loss” is defined as “peril or other type of loss, not otherwise excluded under this policy.” The term “peril” is not defined in the policy. The phrase “other type of loss” is not defined in the policy. The policy also covers Circus Circus’ business interruption losses that result from a Covered Cause of Loss.
Circus Circus LV, LP said the ‘Stay at Home Orders’ and the closure of non-essential businesses that were issued by the state in March have caused and are continuing to cause the necessary partial or total interruption of Circus Circus’s business operations.
The lawsuit also claims Circus Circus, LV LP policy with AIG provides up to $500 million in coverage for physical loss or damage of property and up to $96,774,307 in coverage for loss of business income.