United Specialty Insurance No Payout for Epic Passes Covid-19 Losses Class Action

Ski passes are not cheap; they may cost $900 or more. When people buy Epic Passes for ski resorts, they can also buy insurance coverage for them. However, the class for this action alleges that the insurer, United Specialty Insurance Company (USIC), has refused to make payouts on passes due to closures related to the coronavirus pandemic.

The class for this action is all persons who bought both an Epic Pass for the 2019-2020 ski season and also bought insurance from USIC on the pass, and where the pass has not been refunded or reimbursed for the loss of its use after resorts closed on March 15, 2020, due to no fault of their own.

USIC provides ski pass insurance to customers of Vail Corporation, which does business as Vail Resorts Management Company. Vail Resorts has some thirty-four resorts and sells a variety of annual, weekly, daily, or other types of Epic Passes for those resorts. The insurance is intended to refund money when a buyer is no longer able to use a pass for reasons beyond the buyer’s control.

The plaintiff in this case, Mary Handorf, bought three passes and insurance on them, believing that she and her children would be able to use them for the entire 2019-2020 season.

Due to the Covid-19 pandemic, Vail announced on March 15 that it was closing all of its mountain resorts; two days later, on March 17, it announced that the North American resorts and stores would be closed for the remainder of the 2019-2020 season. Vail’s chairman and CEO explained that the reason was the “fast-moving, constantly developing situation” with the disease.

The President and various state governor have issued orders closing all non-essential businesses. Skiing and snowboarding are not essential activities.

Handorf has therefore not been able to continue using the passes. She made a claim with American Claims Management, Inc. (ACM), a third party that administers insurance claims on the Epic Passes, but ACM has rejected it.

Among the Covered Perils in the policy is this one: “You are subpoenaed, required to serve on a jury, hijacked, quarantined or your travel visa is denied…”

The policy does not define “quarantined.” The complaint quotes a definition of “quarantine” from the Code of Federal Regulations: “the separation of an individual or group reasonably believed to have been exposed to a quarantinable communicable disease, but who are not yet ill, from others who have not been so exposed, to prevent the possible spread of the quarantinable communicable disease.”

The complaint alleges that Handorf and others members of the proposed class were, in fact, quarantined and unable to use the passes for that reason. It alleges breach of contract.

Article Type: Lawsuit
Topic: Insurance

Most Recent Case Event

United Specialty Insurance No Payout for Epic Passes Covid-19 Losses Complaint

October 16, 2020

Ski passes are not cheap; they may cost $900 or more. When people buy Epic Passes for ski resorts, they can also buy insurance coverage for them. However, the class for this action alleges that the insurer, United Specialty Insurance Company (USIC), has refused to make payouts on passes due to closures related to the coronavirus pandemic.

United Specialty Insurance No Payout for Epic Passes Covid-19 Losses Complaint

Case Event History

United Specialty Insurance No Payout for Epic Passes Covid-19 Losses Complaint

October 16, 2020

Ski passes are not cheap; they may cost $900 or more. When people buy Epic Passes for ski resorts, they can also buy insurance coverage for them. However, the class for this action alleges that the insurer, United Specialty Insurance Company (USIC), has refused to make payouts on passes due to closures related to the coronavirus pandemic.

United Specialty Insurance No Payout for Epic Passes Covid-19 Losses Complaint
Tags: Covid-19 Related, Insurance, Ski Resort Pass