Lake Havasu, Ariz., Resort Sues Insurer for COVID-19 Business Losses

PHOENIX — A Lake Havasu, Ariz., resort has sued Illinois Union Insurance Company Inc., seeking coverage for $2 million in losses it sustained when it was forced to close in response to the COVID-19 pandemic and related civil authority orders.

In a May 8 complaint filed in the U.S. District Court for the District of Arizona, London Bridge Resort LLC says its policy covers business interruption losses in the event of certain acts of civil authority arising out of a pollution condition, which the policy identifies as “government action” and “environmental law.”

London Bridge filed a claim with Illinois …