Last week, Judge Douglas L. Rayes dismissed a lawsuit filed by a group of Minor League Baseball teams against their insurers, rejecting the teams’ assertion that their insurers cannot enforce the virus exclusions in their contracts.
In their lawsuit, the group of baseball teams cited certain circumstances related to the pandemic that stopped them from continuing business-as-usual: a lack of players, government-issued stay-at-home orders, and mandatory shutdowns. As with many standard business interruption contracts in the U.S., these contracts have virus exclusions. Consequently, insurers cannot be held responsible for coronavirus-related losses.
This latest decision continues to underscore the fact that global pandemics are not insurable. There are at least two more still-pending lawsuits involving Minor League Baseball clubs suing their insurers over business interruption claims.
You can access the full Bloomberg Law article on the decision here.
For more resources and information, visit fairinsure.org.