The Houston Rockets and billionaire owner Tilman Fertitta are suing their insurer for denying the NBA team’s bid to tap its business-interruption insurance policy over revenue losses from the Covid-19 pandemic.
The suit is the first by an NBA team seeking to recover losses tied to the economic body blows wrought by the coronavirus. Fertitta said in court filings he paid around $719,000 in annual premiums for more than $400 million in business-interruption insurance. He said the policy covers the pandemic because it was not specifically excluded.
Lawyers for the Rockets said that pandemic has hit them very hard. Toyota Center officials were forced to cancel not only NBA games, but rodeos, concerts, and other revenue-generating gatherings, according to the suit. The Rockets’ lawsuit contend loss of use of the arena constitutes “physical damage” triggering the coverage.
Source: https://www.insidesport.co/