Crown Trophy Sues Insurer for $20 Million in COVID-19 Losses

According to a court report from Westfair Business Publications, Hawthorne, New York-based Crown Trophy Inc. sues its property insurer for $20 million for allegedly refusing to cover damages caused by COVID-19.

Federal Insurance Co. “promised to pay for losses of business income and extra expenses sustained as a result of perils not excluded under the policy,” according to a complaint filed Sept. 1 in Westchester Supreme Court. Federal Insurance “without justification” disputes that the policy covers the losses.

Opening its first store in 1978, Crown Trophy has grown into the largest retailer in the country of trophies, plaques, medals, and other awards, according to its website. It has 150 stores in 40 states, including franchises.

It bought property insurance coverage for 2020 for its headquarters, warehouse, and equipment facility in Hawthorne, according to Westfair. The trophy retailer describes its policy as business interruption coverage in the event it has to suddenly suspend its operations for “reasons outside their control,” including economic and financial losses.

Crown’s deal is an “all-risk” policy with no exclusions, according to the complaint.

Crown says the pandemic caused direct physical loss or damages by denying access to its property, preventing customers and workers from occupying the property, and causing a suspension of business operations.

It’s asking the court to declare that Federal Insurance Co. must cover the losses and to grant a judgment for current damages of no less than $20 million.