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Dodgers One of the Teams Around the League Suing Their Insurance Providers

The pandemic is complicating a lot of things for teams.



The Dodgers are indeed part of the lawsuit that is currently taking place against insurance providers. That now means that all 30 MLB teams are suing their insurance providers after they refused to make payouts during the pandemic. Providers AIG, Factory Mutual, and Interstate Fire and Casualty Company have not paid out teams despite the all-risk policy purchase that they carry league-wide. 

Part of the loss that the Dodgers and other teams are hoping to recover from is billions of dollars on unsold tickets, concessions, parking, and much more associated with a normal season. The lawsuit also cites media losses that the league believes should be covered by the insurance policy. MLB issued the following statement regarding the lawsuit:

Due to COVID-19, the Major League Baseball entities, including those of the 30 major league clubs, have incurred significant financial losses as a result of our inability to play games, host fans and otherwise conduct normal business operations during much of the 2020 season. We strongly believe these losses are covered in full by our insurance policies, and are confident that the court and jury will agree.

The COVID-19 pandemic forced teams to cut off Spring Training way back in the middle of March. It took months just for the player’s union and MLB to be able to talk about the terms of getting to play a regular season. The two sides eventually settled on 60-games to account for the loss of attendance in factoring in how owners would pay players. The Dodgers certainly felt the pain as they have reported significant losses this year despite winning a World Series. 

The named insurers have said that this particular case does not constitute a physical loss or property damage and thus cannot be covered. Obviously, the league has a difference in opinion there. 

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Written by Brook Smith

Brook is the Senior Editor of Dodgers Nation, with several years of experience in sports journalism. He is an avid Dodgers and Lakers fan, and can be spotted fairly often at Dodger Stadium and Staples Center.

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  1. Hmmm! AIG. Once again. Remember 2008, 2009? Too big to fail. Insurance companies talk the talk but do not walk the walk. They rake in millions. And now baseball is filing a claim. This should be a no- brainer. Obviously, they should not be required to pay all the losses; but they should pay a substantial portion.

  2. Insurance companies get rich by charging premiums and not paying claims. And their commercials make them look like the most friendly institutions in the world.

  3. As of the SARS epidemic, insurers have written exclusions for these exact situations. In order for this type of event to be coverable, premiums would have to be so high as to make the products unavailable. Perhaps half of the country pretending that this was “just another flu” didn’t work out so well for the economy.

  4. By legal definition insurance agreements are contracts of adhesion, meaning that any ambiguities in meaning are decided by the judge against the constructor of the wording, in this case the insurance carriers. If Dodger management participated in drafting of the final wording you’ll in all probability have a legal jump ball here.

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