LAS VEGAS RESORT SUES AIG UNIT OVER REJECTED BI CLAIM

Las Vegas resort Circus Circus Hotel and Casino has filed a lawsuit in federal court on accusations AIG Specialty Insurance improperly denied its claim to recover business interruption losses and other losses amid the Covid-19 pandemic. In its court filing, the resort said its “all risks” policy from AIG provides up to $500m in property damage and physical loss and up to $97 in business interruption losses. The one-year policy runs through December 20, 2020 and carried a $1.6m premium. “Despite agreeing to cover Circus Circus for all risks of physical loss or property damage resulting from perils not specifically excluded, and Circus Circus’ 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 obligations,” the suit said.