Houston Rockets, Arena Sue Insurer for Coverage of COVID-19-Related Losses

PROVIDENCE, R.I. — The owners of a professional basketball team and their home arena have sued Affiliated FM Insurance Co., demanding coverage for losses they experienced when government orders issued in response to the COVID-19 pandemic suspended the 2019-20 season.

In a July 16 complaint filed in the Providence/Bristol County (R.I.) Superior Court, Toyota Center owner Clutch City Sports & Entertainment LP and Houston Rockets owner Rocket Ball Ltd., contend that the loss of the arena triggered coverage under their $412 million property insurance policy.

Specifically, communicable diseases like COVID-19 cause physical loss and damage to property, as required by …