Coca-Cola Files Suit Against Lloyd’s, Hanover
Well-known beverage giant Coca-Cola has filed a lawsuit against its insurers, seeking a $1 million judgment with interest to cover damages after its Nepal bottling factory faced losses.
The suit was filed in a Georgia federal court in the United States. Coca-Cola claims that the Nepal-India blockade caused business interruption losses that were covered by a political risks insurance policy purchased from underwriters at Lloyd’s of London and Hanover Insurance. The blockade was in place from September 23, 2015, until February 5, 2016. The conflict stemmed from the adoption of a new constitution in Nepal and severely affected the import of goods from India.
“The inability for supplies to arrive in Nepal significantly limited the Coca-Cola Bottling Plants’ ability to obtain sugar, fuel, CO2, and other supplies,” said the complaint filed against the insurers.
Because of the blockade, Coca-Cola was unable to operate its facilities fully, with one completely shut down and another only partially functional.
According to a report on the website law360.com, Coca-Cola is suing for breach of contract. It alleges that it submitted claims to Lloyd’s and Hanover in December 2016 under political risks policies that it held with both insurers. Coca-Cola provided evidence of business interruption losses that totaled $986,029. After corresponding with the insurers, they denied coverage to the company. Coca-Cola claims that it paid substantial premiums for the coverage and had complied with all required terms and conditions of the policy.