When viruses shut down ski operations at Canadian Mountain Holidays and Ontario’s Blue Mountain Resort in 2015 and 2018, Lexington Insurance Co. paid the resort owners $200,000 in business interruption claims. LitigationProperty
But when the coronavirus pandemic shut down the two ski operations in March 2020 — and more than a dozen others owned by Denver-based Alterra Mountain Co. — Lexington declined to cover more than $200 million in lost business for the privately held ski area operator.
‘The only reason Lexington handled’ the COVID-19 business interruption claim differently than the previous two virus claims ‘was solely on the ground that the current claim is much larger that the prior claims,’ reads a breach of contract lawsuit filed this week by Alterra Mountain Co. in Denver District Court seeking a jury trial to force Lexington to pay claims for $200 million in lost business stemming from the government-mandated shutdown of ski resorts across North America due to the COVID-19 pandemic.
Alterra’s lawsuit, which cites Colorado law allowing it to collect double the covered benefit that was ‘unreasonably delayed or denied,’ argues Lexington declined the loss-of-business claims so it could protect its bottom line.