Two Oklahoma tribes have filed lawsuits that seek to require AIG and Lloyd’s of London to cover monetary losses that are occurring due to the forced casino closures during the coronavirus pandemic.

According to the coronavirus insurance lawsuits filed by the Chickasaw and Choctaw nations, their policies through Lloyd’s of London, AIG and various other insurance companies should cover pandemic-related losses.

This coverage may be imperative for the tribes in light of the lack of funding received by tribes across the nation in the most recent trillion-dollar stimulus package passed by the federal government.

“On or about March of 2020, the United States of America became infected by COVID 19 resulting in a pandemic,” state both coronavirus insurance lawsuits. “As a result of this pandemic and infection, the Nation’s Property sustained direct physical loss or damage and will continue to sustain direct physical loss of damage covered by the policies, including but not limited to business interruption, extra expense, interruption by civil authority, limitations in ingress and egress, and expenses to reduce loss.”

The Chickasaw and Choctaw Nations say they shuttered most of their businesses in the interest of public health, including casinos and restaurants. The tribes say they must also support their members during the coronavirus pandemic, offering public health services and financial support to the unemployed; however, they are struggling to do so while facing a steep loss of income from tribal hotels, casinos and other businesses.

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As a result, the Chickasaw and Choctaw Nations have each filed a petition for judgment with a district court in Oklahoma, asking the court to compel their insurers to cover these revenue losses during these mandatory closures.

“As a direct result of this pandemic and infection, the Nation’s Property has been damaged…and cannot be used for its intended purpose,” contends the tribes’ petitions for judgment.

The coronavirus insurance lawsuits name all of the tribes’ insurers and underwriters, including AIG and Lloyd’s of London, as well as Arch Specialty Insurance, Liberty Mutual, Homeland Insurance Co. of New York, Hallmark Specialty Insurance Co., and Endurance Worldwide Insurance Ltd., among others.

While the recent federal stimulus bill aims to stave off the economic fallout due to the social distancing measures put in place, and to help curb the effects of the pandemic by dumping trillions of federal dollars into the economy, tribes were initially set to receive nothing.

The tribes contended that they needed at least $20 billion to support their communities while important revenue sources for the nations were closed; however, they ultimately ended up with $15 billion under the coronavirus relief bill that was passed by the federal government.

The National Congress of American Indians stated on Wednesday that “inadequate federal funding” is still an issue.

Can Coronavirus Insurance Help Closed Businesses?

Small and large businesses across the nation have suffered as a result of distancing and other public health measures aimed at slowing the coronavirus pandemic. As a result, the United States has reportedly entered into a sudden recession.

Some business owners have turned to insurance policies to help keep them afloat during these trying times, but some insurers are denying coronavirus insurance coverage.

Business owners, such as the Chicksaw and Chocotaw Nations, say they have business interruption insurance to cover damages to their business during the coronavirus pandemic. However, some insurers are reportedly denying this coverage. The insurers are arguing that their business interruption coverage is only for natural disasters, such as fires.

The Chicksaw and Chocotaw Nations rely heavily on revenue generated by casinos, hotels and restaurants, which are all shuttered now due to the coronavirus. Similarly to other entertainment businesses, including cruise lines, sports and movie theaters, the gambling industry has been hit hard by the social distancing measures required to stop the spread of the disease.

As a result, business owners, along with their employees, are facing financial ruin in addition to the fear and uncertainty of the public health crisis due to the coronavirus pandemic.

The tribes are represented by Michael Burrage, Reggie Whitten, J. Revell Parrish, Patricia A. Sawyer, Austin Vance and J. Renley Dennis of Whitten Burrage Law Firm.

The Coronavirus Insurance Lawsuits are Chickasaw Nation Department of Commerce v. Lexington Insurance Co., et al., Case No. cv-20-35, in the District Court of Pontotoc County, Oklahoma, and Choctaw Nation of Oklahoma v. Lexington Insurance Co., Case No. cv-20-42, in the District Court of Bryan County, Oklahoma.

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