Two mega-industries, insurance companies and casinos, are currently in a tense relationship. Gambling establishments that lost a lot of money due to downtime during the epidemic are now demanding compensation from insurers. Insurance companies, in turn, are fighting to default, horrified by the costs that shine on them.
Miami-based Magic City has joined the list of casinos that have sued for the truth. Earlier it was reported that the Circus Circus casino sued AIG in Nevada, demanding insurance payments on its policy, which was supposed to cover all risks. Magic City went to court in South Florida in a similar case. They blame four insurance companies at once. Like AIG, they have sold all-risk insurance and now they don't want to pay compensation.
As with Circus Circus, the insurers that sold Magic City insurance did not list business shutdowns due to the spread of the virus as an exception. According to casino representatives, they do not sue insurance companies whose policies listed viruses as exceptions.
One can only sympathize with the insurance companies that have not ruled out the spread of the virus. Most likely, now all of them will take into account the likelihood of epidemics and close this gap through which millions and even billions of dollars can leak.
Now insurers are at risk of being in a very unpleasant position. Industry officials are already warning of dire financial consequences if forced to cover pandemic-related losses.
