United Specialty Insurance Refusal to Cover Epic Passes Class Action

In the spring of 2020, a great number of people lost the use of event tickets, reservations, and other purchases due to closures initiated by the Covid-19 pandemic. Among the closures were those of ski facilities, and among the losses were amounts paid for 2019-2020 seasonal ski passes. The complaint for this class action alleges that United Specialty Insurance Company (USIC) is refusing to make refunds on passes it insured, which it claims is a breach of contract.

The class for this action is all those in the US (1) who bought an Epic Pass for the 2019-2020 ski season, (2) who bought insurance on the pass from USIC.

Among the losses due to Covid-related closures were those for Epic Passes, which relate to the facilities of Vail Corporation, which does business as Vail Resorts Management Company and operates more than thirty resorts for skiing and snowboarding around the US.

The Epic Passes come in different types, including annual, weekly, and day passes. The most expensive ones cost over $900.

In order to get customers to buy passes early on, and to reduce the risks for customers who are worried about such long-term and expensive purchases, Vail offers customers pass insurance through USIC.

The three plaintiffs in this case all bought passes and insurance covering the passes. The complaint quotes the certificate of insurance as saying it covered them “against the risk of not being able to use your Season Ski Pass due to a covered peril.”

The “Perils Insured Against” include “Sickness, Injury or death of you or a Family member” and “you are subpoenaed, required to serve on a jury, hijacked, quarantined or your travel visa is denied[.]”

The certificate does not define “quarantined,” but the complaint gives some common definitions of the term, including “a restraint upon the activities or communications of persons … designed to prevent the spread of disease…”

The complaint alleges that orders and directives issued to prevent the spread of Covid-19 fall under the definition of quarantining. Also, according to the complaint, Vail Resorts itself closed its resorts on March 15, 2020, and later extended the closure to the rest of the season. On the same day, the Governor of Colorado issued an order closing downhill ski resorts in the state.

Claims under the insurance were to be filed with American Claims Management (ACM). However, ACM has posted a “Reminder” that says, in bold type, “There is no coverage under the insurance policy for Resort Closure. We suggest you go to the 2019/2020 Pass Holder Credit section of epicpass.com for more information prior to filing a claim.”

Some filed for a refund anyway, but ACM has said it will not pay claims for the passes because the pass purchasers had not had a “Sickness” and because the insurance does not cover “governmental authority(s) recommendation to avoid … travel, and/or ‘hold in place’…”

Article Type: Lawsuit
Topic: Insurance

Most Recent Case Event

United Specialty Insurance Refusal to Cover Epic Passes Complaint

May 18, 2020

In the spring of 2020, a great number of people lost the use of event tickets, reservations, and other purchases due to closures initiated by the Covid-19 pandemic. Among the closures were those of ski facilities, and among the losses were amounts paid for 2019-2020 seasonal ski passes. The complaint for this class action alleges that United Specialty Insurance Company (USIC) is refusing to make refunds on passes it insured, which it claims is a breach of contract.

United Specialty Insurance Refusal to Cover Epic Passes Complaint

Case Event History

United Specialty Insurance Refusal to Cover Epic Passes Complaint

May 18, 2020

In the spring of 2020, a great number of people lost the use of event tickets, reservations, and other purchases due to closures initiated by the Covid-19 pandemic. Among the closures were those of ski facilities, and among the losses were amounts paid for 2019-2020 seasonal ski passes. The complaint for this class action alleges that United Specialty Insurance Company (USIC) is refusing to make refunds on passes it insured, which it claims is a breach of contract.

United Specialty Insurance Refusal to Cover Epic Passes Complaint
Tags: Covid-19 Related, Denial of Benefits, Insurance