Business Interruption: Circus Circus Challenges Insurance Policy

  |   July 16, 2020

Nearly four months after Circus Circus closed its doors, per the Nevada governor’s stay-at-home directive, the well-known Las Vegas hotel and casino joined the swelling ranks of businesses that are suing their insurance carriers over denied claims for business losses due to the COVID-19 pandemic.

The case of Circus Circus disputes terminology in its “all risks” insurance policy with AIG. With it, the hotel and casino joins hundreds of businesses, including Treasure Island Resort and Casino, who are also suing their insurance carriers over denied COVID-19 related claims.

However, insurers continue to gain traction denying business interruption (BI) coverage for policyholder losses tied to COVID-19 stay-at-home orders, claiming that the novel coronavirus has not caused direct physical loss of or damage to property. While Circus Circus did not specify what amount of money it is seeking for loss of business income, Treasure Island LLC is alleging that it is owed $1.1 billion in reimbursements.

Notwithstanding the above, as COVID-19 evolves, legislative authorities are continuing to propose federal statutes that could help with BI claims. Ultimately, coverage decisions will be based on policy language and the developing law.

For your casino to try to obtain the best possible outcome, plan on submitting a BI claim – now!

Review your casino’s insurance policies and notify and communicate with your casino’s insurance carrier(s). With the help of your financial and legal teams, start collecting and analyzing financial records in order to identify and quantify your casino’s losses.

REDW can help capture lost revenue, avoided costs, extra expenses and mitigation amounts – regardless of policy exclusions. We have our own proprietary industry benchmarking statistics, which provide an exclusive resource for projecting lost revenue, a key variable when calculating net lost profits.

If you need help preparing your BI claim, please contact Brian Foltyn, Anthony Gerlach, Adam Smith, or Natalie Arterburn and make sure to visit our COVID-19 Resource Hub for further help navigating through this crisis.


This publication is intended for general informational purposes only and should not be construed as investment, financial, tax, or legal advice.


REDW is committed to keeping you informed at all times, but especially during a crisis of the magnitude of the COVID-19 pandemic. Stay connected with us on LinkedIn and @REDWLLC. Or check out some of our other updates here.

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