The Calgary FlamesThe organization will sue its insurers for $125 million to cover “massive damages” caused by COVID-19 during the last two hockey seasons.
On March 12, 2020, the NHL was forced to halt its operations by the pandemic. Fans have been prevented from attending games in Canada by the heavy government mandates.
In June 2021, the NHL and 20 other clubs — which includes five Canada-based teams that are not located in Alberta — filed similar lawsuits to Calgary’s. The group collectively seeks reimbursement of more than $1B in COVID-19-related loss.
Calgary Flames LP has filed a claim to the Calgary Court of Queen’s Bench regarding insurance coverage that was purchased through six companies. The defendants named are Westport Insurance Corp. Royal and Sun Alliance Insurance Company of Canada. Liberty Mutual Insurance Company. Aviva Insurance Company of Canada. Northbridge General Insurance Corp. and Special Program Group Canada Inc.. They operate under the name Can-Sure Underwriting.
The Flames stated that the insurance companies have concluded that viruses do not cause any physical damage or loss and therefore have not been reimbursed for COVID-19 damages.
Calgary stated in the filing that the all-risks policy covered “all risks of direct or indirect physical loss or damage.” Calgary Flames LP promised that the all-risks policy would protect it against revenue loss and other expenses if it couldn’t use its arenas or other properties because of an external physical peril.
“These covered perils include known or unknown risks, as well as noxious chemicals that render arenas impracticable. COVID-19, the COVID-19 virus and COVID-19 were just a few of the covered perils and risks. Calgary Flames LP purchased an all risk policy to cover any losses it might suffer from a worldwide pandemic like the COVID-19 virus.
The Flames didn’t disclose in their documents the premiums they paid for their policy.
Calgary claims the insurance did NOT include any “broad viruses or pandemic exemptions”, but that instead “insurers offered cover with narrower exclusions” which still shouldn’t prohibit coverage for the type of losses the company has sustained due to COVID.
Flames called fans “the lifeblood” of their revenue and had no control over government protocols that would prevent people from gathering.
The claim states that the arena was created to allow fans to cheer on events and eat and drink at various events.
Calgary also noted the “significant expenditures” of the team, which included repairs and preventive actions that were required to reopen a building once it was allowed.
The Flames have yet to register a statement of defense that addresses the allegations.