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Space Needle sues insurer for pandemic losses

SEATTLE — Seattle’s Space Needle has filed a lawsuit against the North American Elite Insurance Company alleging it failed to pay out an insurance policy that included recouping losses resulting from the COVID-19 pandemic.

The limit of liability on the policy is $160 million.

The Space Needle alleges Elite promised to insure against the losses sustained from revenue lost due to government shutdowns related to COVID-19.

The lawsuit says the policy specifically included coverage for “Interruption by Communicable Disease” and “Order of Civil or Military Authority.”

The Space Needle believes the language around the definition of “communicable disease” is broad enough to include COVID-19.

In March 2020, Gov. Jay Inslee’s shutdown of the state led to the Space Needle shutting down. Visitors to the Space Needle have just begun to return, but access is still highly restricted.

The lawsuit says that as a result of the interruption to the business, the Space Needle has lost millions in revenue.

On March 30, 2020, the Space Needle notified Elite written notice and claimed coverage on the policy, but Elite has not accepted coverage in nearly a year.