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Volume 26 No. 225
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Rockets Sue Insurance Provider Over Denial Of COVID-Related Claim

The team claims that the pandemic is akin to a natural disaster in its impact on Toyota Center
Photo: NBAE/GETTY IMAGES
The team claims that the pandemic is akin to a natural disaster in its impact on Toyota Center
Photo: NBAE/GETTY IMAGES
The team claims that the pandemic is akin to a natural disaster in its impact on Toyota Center
Photo: NBAE/GETTY IMAGES

The Rockets "filed suit in Rhode Island against the team’s insurance provider, which last month rejected the team’s claim for damages related to the shutdown of NBA games and concert performances" in the wake of the pandemic, according to David Barron of the HOUSTON CHRONICLE. The lawsuit, filed in Providence County Superior Court on behalf of Clutch City Sports & Entertainment and Rocket Ball Ltd., "accuses Affiliated FM Insurance Co. of breach of contract by refusing last month to honor a policy that provides a maximum of $412 million in coverage for which the team paid $790,490." The Rockets are believed to be the "first NBA team to file suit over insurance claims related to losses after the NBA season was halted." The Rockets "did not specify the amount of the claim but note in the lawsuit that the policy provides 'a substantial portion ... in coverage for business interruption losses on a per occurrence basis.'" Toyota Center has "lost at least 29 scheduled events, consisting of 20 concerts and nine Rockets games, plus undetermined postseason NBA games." The team claims that the pandemic is "akin to a natural disaster in its impact on the arena," and that no exclusions in the policy "would limit coverage for physical damage or business interruption losses resulting from the COVID-19 shutdown" (HOUSTON CHRONICLE, 7/21).