The only commodity of any insurance company is money. Thus, every insurance company operates under the desire to collect as much money as possible in premiums while paying out as little money as possible in claims.
Sometimes, a denial of a claim sparks litigation. Via Robert Moran of the Philadelphia Inquirer, the Eagles have sued Factory Mutual Insurance Co. over a refusal to pay claims arising from financial losses that occurred during the pandemic.
The Eagles explain in their legal filing that, “despite best efforts to navigate the pandemic,” the Eagles “have incurred and continue to incur substantial financial loss” due to the pandemic and the business disruption it caused. The Eagles contend that they have paid “top dollar” for the coverage, which provides “up to $1 billion per occurrence.”
The insurance company has taken the position, per the Eagles, that it will “strictly limit coverage to the $1 million aggregate sublimit for Communicable Disease coverage.”
Said the insurance company in a statement to Moran, “It is unfortunate when legal matters arise because we strongly believe our insurance policies are clear on the coverage provided.”
Insurance companies routinely believe their policies are clear. Customers routinely disagree. Courts often get involved in order to work it all out.