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Ralph Lauren is not entitled to coverage for the financial losses the clothing corporation has endured during the COVID-19 outbreak, the indicted insurance company has claimed.
In a motion filed Friday, Factory Mutual Insurance Co. says Ralph Lauren’s $700 million property insurance policy doesn’t cover losses unless there’s a direct link to the virus.
Ralph Lauren is arguing for payouts on its claims of financial losses after shutting down stores in the related lockdowns last year.
The retailer filed the complaint last August, citing a 93 percent drop in wholesale business in 2020. Sales in its North American stores fell 77 percent.
Ralph Lauren is claiming there was direct physical loss from these closures and argues the “direct physical loss or damage” clause should cover it.
Factory Insurance maintains the policy does not cover such a claim, however.
In this latest motion, the insurance company says Ralph Lauren has to be specific with evidence the virus was actually present at its stores.
“Ralph Lauren is unable to demonstrate that any of its covered properties were physically damaged by the stay-at-home orders or their underlying causes,” the motion stated.
Factory Mutual says Ralph Lauren lacks factual basis for its claim and must prove COVID-19 infections at its properties. The insurance company further states in the motion the judge assigned to this case has ruled against similar claims in the past.
“Like those plaintiffs, Ralph Lauren is unable to demonstrate that any of its covered properties were physically damaged by the Stay-At-Home Orders or their underlying causes,” the complaint states.
Both of those cases involved packing plants affected by an ammonia leak and an electrical outage. Ralph Lauren’s claim is not the same, the complaint contends, because the COVID shutdowns didn’t cause the same damage.
Unlike a chemical spill or grid blackout, the COVID-19 virus can be wiped away, the complaint argues.
“Covid-19 has no impact whatsoever on a property’s structure, nor does it physically transform a property into one that is “unusable” or “uninhabitable.” After all, businesses deemed “essential” could and did continue operating throughout the pandemic even in jurisdictions with Stay-At-Home Orders in place,” the complaint contends.
This latest development is one of many legal battles related to the COVID-19 pandemic. Stay up to date on relevant coverage.
What do you think of this lawsuit filed by Ralph Lauren over its COVID insurance claims? Let us know in the comments below.
Ralph Lauren is represented by Kevin V. Small, Walter J. Andrews, Michael S. Levine and Matthew J. Revis of Hunton Andrews Kurth LLP.
The Ralph Lauren COVID Insurance Lawsuit is Ralph Lauren Corp. v. Factory Mutual Insurance Co., Case No. 2:20-cv-10167, in the U.S. District Court for the District of New Jersey.
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11 thoughts onRalph Lauren COVID Lawsuit Should Be Dropped, Insurer Claims
The reason their stock has failed so miserably is because life long customers like myself gave them a big F U due to their mask mandates. I have asthma, COPD, and sleep with a breathing machine(CPAP). I have papers form my doctor stating that I can not wear a mask. There is NO mask mandate in Mississippi but yet the Polo factory outlet mall in Gulfport Mississippi still requires that you wear a mask. I tried to show them my credentials but yet they still refused my admittance. I will never purchase anything from them again.