Foxwoods Resorts Casino to Receive $2 Million in Pandemic Related Compensation


Connecticut superior court has ordered insurer Factory Mutual to pay Foxwoods Resorts Casino $2 million for coronavirus-related losses. That is just a fraction of the $76 million that casino owners sought.

The Mashantucket Pequot Tribal Nation was among the casino operators and other businesses that sued insurers over widespread denial of pandemic-related claims.

The Pequot Tribe, the owner of Foxwoods Resorts, sought $76 million that they argued to be under the all-risk policy it held with Factory Mutual.

Though Factory Mutual alleged bad faith and breach of contract, Factory Mutual maintained that the loss caused by viruses and contamination were excluded from the casino policy.

In most cases, insurers have an advantage and have won up to 80 percent in at least 200 pandemic-related cases. Insurers want the claimant to demonstrate that their properties indeed suffered physical damage from the pandemic.

Though the pandemic caused a temporary closure of properties, they never suffered any physical damage in the way of fire or hurricanes.

However, Pequot will receive $2 million in compensation covered under communicable disease interruption and losses that added up to about $2 million payouts.

Meanwhile, Caesars Entertainment is also suing a group of 60 insurers for refusing to compensate for the pandemic-related losses. Caesars has reached the top line in the all-risk policy portfolio.


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