Major League Baseball Hits Insurers with $1.6 Billion COVID-19 Coverage Lawsuit

OAKLAND, Calif. — Major League Baseball and its 30 teams have sued their insurers in California court, demanding coverage for billions of dollars in losses they sustained when the COVID-19 pandemic forced them to play in nearly empty stadiums during the 2020 season.

In an Oct. 16 complaint filed in the Alameda County Superior Court, plaintiffs say AIG Specialty Insurance Co., Factory Mutual Insurance Co. and Interstate Fire & Casualty Co. breached the three “all-risks” policies — which cover up to $1.6 billion in losses — by refusing to pay the claims.

“The all-risks policies specifically insure against physical loss …