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TinCaps among MiLB teams to sue insurance providers over denied coronavirus claims

Fifteen minor league baseball teams have filed a lawsuit alleging breach of contract by insurance providers after being denied claims for business-interruption insurance due to the coronavirus pandemic.

Posted: Jun 23, 2020 4:21 PM
Updated: Jun 23, 2020 11:10 PM

NEW YORK (AP) - Fifteen minor league baseball teams have filed a lawsuit alleging breach of contract by insurance providers after being denied claims for business-interruption insurance due to the coronavirus pandemic.

Major League Baseball announced Monday that it will attempt to play a 60-game regular season, but its minor league clubs — many under threat of losing affiliations amid negotiations with MLB — are unlikely to play until at least 2021.

Minor league franchises said in the suit filed Tuesday that even though they continue to pay yearly premiums to insurance providers for business-interruption insurance, they have been denied coverage after Baseball Commissioner Rob Manfred indefinitely suspended their seasons in March.

Minor league teams are mostly small, independently owned businesses, and their model depends on affiliates receiving players, coaches and other team personnel provided by major league clubs.

Government restrictions on mass gatherings are also precluding minor league teams from hosting fans at their ballparks, by far the greatest source of revenues for those franchises. Over 40 million fans attended minor league games involving 176 affiliates last season.

The suit claims teams are stuck with over $2 million in expenses on average, including as much as $1 million in ballpark lease payments, marketing costs, food and beverage supplies, and salaries and benefits for permanent employees.

Teams say providers are citing two reasons for denying claims — because losses are not resulting from direct physical loss or damage to property, or because policies include language excluding coverage for loss or damage caused by viruses.

Teams say the loss of use of their ballparks due to government restrictions on fan gatherings and their inability to obtain players qualifies as physical loss. They allege the latter clause is void because it’s unenforceable and inapplicable.

The likely loss of the 2020 season comes at an already challenging time for the minors. The Professional Baseball Agreement between MLB and minor league team owners is set to expire after this season, and MLB proposed reducing the guarantee minimum of affiliates from 160 to 120.

The suit, filed in U.S. District Court in Philadelphia, names Philadelphia Indemnity Insurance Co., Acadia Insurance Co., National Casualty Co., Scottsdale Indemnity Co., and Scottsdale Insurance Co. as defendants. Defendants did not immediately responded to requests for comment.

The minor league clubs listed in the suit are the Chattanooga Lookouts, Augusta GreenJackets, Boise Hawks, Columbia Fireflies, Eugene Emeralds, Binghamton Rumble Ponies, Fort Wayne TinCaps, Frederick Keys, Greenville Drive, Idaho Falls Chukars, Inland Empire 66ers, Amarillo Sod Poodles, San Antonio Missions, Stockton Ports and Delmarva Shorebirds.

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 613228

Reported Deaths: 9728
CountyCasesDeaths
Marion846851338
Lake45676687
Allen32980552
Hamilton29649315
St. Joseph27531382
Elkhart24478345
Vanderburgh19610250
Tippecanoe18108141
Johnson15191295
Porter14944169
Hendricks14485250
Madison11044222
Clark10811144
Vigo10795181
Monroe9458113
Delaware9170134
LaPorte9145164
Howard8292144
Kosciusko810183
Warrick680299
Hancock6782104
Bartholomew6640100
Floyd6507110
Wayne6177162
Grant6027116
Dubois558680
Boone556468
Morgan548695
Henry511464
Marshall506984
Cass486964
Dearborn486545
Noble475659
Jackson427747
Shelby420781
Lawrence393780
Clinton375044
Gibson374459
Harrison353045
DeKalb349864
Montgomery347654
Knox336239
Miami324544
Steuben315046
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Scott226839
Clay224332
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Starke176444
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Parke13088
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Blackford111822
Pulaski97837
Newton92021
Brown88335
Benton87110
Crawford8099
Martin74913
Warren6857
Switzerland6695
Union6297
Ohio4977
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Ohio Coronavirus Cases

Data is updated nightly.

Cases: 868656

Reported Deaths: 10768
CountyCasesDeaths
Franklin102154707
Cuyahoga865201153
Hamilton64744448
Montgomery43516419
Summit35250762
Lucas31663631
Butler31268232
Stark26096443
Warren19830142
Lorain19296229
Mahoning17471339
Lake16250154
Clermont16128112
Delaware1453680
Licking13326137
Fairfield1294981
Trumbull12920317
Greene12174141
Medina11732168
Clark11058265
Wood10457158
Allen9988127
Portage9454111
Miami924473
Richland9236118
Marion7486113
Tuscarawas7440183
Columbiana7409124
Pickaway732150
Wayne7111172
Muskingum710342
Erie6221130
Ross5558100
Hancock555292
Scioto542764
Geauga515955
Darke473492
Lawrence460658
Union456928
Ashtabula456473
Sandusky439562
Mercer435089
Seneca433866
Huron432841
Auglaize424164
Shelby422522
Jefferson422469
Belmont421145
Washington394240
Athens38389
Putnam378075
Madison358129
Knox356122
Ashland349038
Fulton340443
Defiance334486
Crawford325774
Preble322737
Brown315821
Logan312132
Ottawa296543
Clinton291543
Williams280367
Highland279018
Jackson265845
Guernsey257126
Champaign253428
Fayette239530
Morrow23464
Perry233718
Holmes226774
Henry221953
Hardin215533
Coshocton206922
Van Wert203445
Gallia199826
Wyandot196751
Pike178017
Adams177715
Hocking173224
Carroll157616
Paulding145321
Noble121040
Meigs109724
Monroe102232
Harrison89921
Morgan83931
Vinton71314
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