Treasure Island (TI) on the Las Vegas Strip is suing an insurer for losses stemming from the Covid-19 pandemic.
The resort filed a claim with FM Insurance for property damage and business interruption after the state of Nevada ordered the gaming industry closed on March 17. The shutdown was lifted June 4.
TI carries combined policy limits of $1.18 billion on both, but FM denied the claim.
FM contends that, since the property did not experience any cases of coronavirus infection onsite prior to the shutdown, coverage would only apply under a $100,000 sublimit for clean-up costs under a communicable disease clause.
Treasure Island maintains otherwise, according its filing.
“’The On-Site Sublimited Communicable Disease Coverages’ do not apply to limit any other coverage under the policy that may also apply to loss or damage resulting from or caused by communicable disease, including physical damage resulting from or caused by communicable disease away from Treasure Island locations,” the suit states.
FM parent FM Global declined to comment, according to local news reports.
