Las Vegas Casino Sues Travelers in Federal Court for Coverage of COVID-19 Business Losses

LAS VEGAS — A Las Vegas casino has sued AIG Specialty Insurance Co. in federal court, contending that business interruption losses it sustained as a result of the COVID-19 pandemic and related government stay-at-home orders are covered under its “all risks” policy.

In a July 2 complaint filed in the U.S. District Court for the District of Nevada, Circus Circus LV LP contends that the COVID-19 virus and closure orders have caused a physical loss of its insured property, triggering coverage under the policy. AIG, however, has denied coverage, the lawsuit says.

“Despite agreeing to cover Circus Circus for all …