Four Seasons Hotel sues insurers for alleged denial of coronavirus loss coverage – NBC Los Angeles
The owners of the Four Seasons Hotel Los Angeles in Beverly Hills are suing members of the Chubb insurance group for allegedly breaking a contract by failing to compensate plaintiffs for millions of dollars in business losses suffered during the coronavirus pandemic.
Burton Way Hotels LLC filed a lawsuit in Los Angeles Superior Court on Friday, naming several Chubb insurance companies as defendants. The lawsuit seeks unspecified damages and a declaration from the judge that the losses are covered by the hotel’s policy with insurers.
A representative for the Chubb Group did not immediately respond to a request for comment.
The Four Seasons, located on Doheny Drive, is a five-star hotel and the crown jewel of the Four Seasons property portfolio, opened in 1987 and achieving an international reputation associated with the highest level of service and luxury, the suit says. The hotel employs hundreds of people and has several restaurants, extensive amenities and more than 250 rooms, the costume says.
In March 2020, the hotel had to suspend or reduce the operations of restaurants, bars, banquet halls, conference rooms, spas and other hotel facilities on-site, and operate at reduced capacity for intermittent periods, the report said. pursuit. Government orders also forced the hotel to cut back on business, the lawsuit says.
“Put simply, the Four Seasons Beverly Hills couldn’t run at full capacity,” the costume says. “As a result, Burton Way suffered substantial financial losses, including lost profits and lost business opportunities. “
To date, Burton Way has suffered more than $ 25 million in losses, the lawsuit says.
The hotel’s management company purchased property insurance policies from Chubb insurers that offered broad all-risk coverage, including coverage for economic losses resulting from direct physical loss or property damage, the lawsuit said.
“Insurers have known for over a decade that they and their policyholders face a substantial risk of losses from viruses and pandemics and have often included an exclusion in their policies to limit or prohibit coverage for such losses. “, says the trial. “Yet insurers chose not to include any of these exclusions in the policies they sold to the Four Seasons.”
The hotel has requested coverage for the losses incurred, but insurance companies “have so far wrongly withheld the policy benefits to which (the hotel) is entitled,” the lawsuit said.
“There is no reason for insurers to withhold benefits from the policy,” the lawsuit said. “By selling comprehensive insurance, insurers have promised to provide broad coverage for financial losses, unless an exclusion clearly and visibly applies as a barrier to coverage.”
The hotel’s losses attributable to the presence of COVID-19 “fall squarely within the coverage offered by policies purchased from insurers,” according to the complaint.