The Houston Rockets and its venue the Toyota Center have filed a lawsuit seeking business interruption coverage for losses related to COVID-19 shutdown orders. Both the team and the venue say their insurer wrongly denied a recently filed claim.
According to the suit, the Rockets and the Toyota Center bought an “all risks” commercial insurance policy from Affiliated FM which provides $412 million in property damage limits “with a substantial portion of that amount in coverage for business interruption losses.” The policy also includes $100,000 sublimits for property damage due to communicable disease and business interruption due to communicable disease.
The arena and the team are represented by Tim Burns, Jeff Bowen, Jesse Bair, and Freya Bowen of Burns Bowen Bair LLP, Stephen M. Prignano of McIntyre Tate LLP. W. Mark Lanier, Alex J. Brown, Ralph D. McBride and Matthew D. Przywara of The Lanier Law Firm PC, Denman H. Heard of Heard Law Firm PLLC, Adam J. Levitt, Mark A. DiCello and Kenneth P. Abbarno of DiCello Levitt Gutzler LLC, and Douglas Daniels of Daniels & Tredennick.
The suit is one of many filed by businesses across the country. Most of the suits are pending, but in two cases judges in Michigan and New York ruled in favor of insurers.
Read more in Business Insurance.