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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