Nashville mall sues insurers, broker in dispute over flood claims

NASHVILLE, Tenn.—The Opry Mills Mall Ltd., which has been closed since early May due to flooding, has filed a lawsuit against 17 insurers and one brokerage seeking at least $150 million in claims.

In its suit, the mall claims it was covered for $200 million in flood insurance through a combination of various insurers, but that its claims have been denied and the insurers have offered only $50 million to cover damages.

Opry Mills mall, which is owned by Indianapolis-based Simon Property Group Inc., claims the mall’s damages are in excess of $200 million.

The lawsuit, was filed Tuesday in Chancery Court in Nashville, Tenn., cites breach of contract and negligence and requests a jury trial.

In the suit, Opry Mills mall claims it purchased $200 million in flood coverage through various insurers including Schaumburg, Ill.-based Zurich North America, Boston-based Liberty Mutual Group Inc. and Lloyd’s of London syndicates.

Also named in the lawsuit is Aon Risk Services Central Inc., a unit of Chicago-based Aon Corp. and the broker involved in placing the insurance for Opry Mills mall.

A spokesman for Zurich declined to comment on the issue due to pending litigation, while a message left with Aon was not immediately returned.

According to court documents, the defendants in the lawsuit claim they are limited to paying $50 million in liability, citing that Opry Mills mall would be entitled to its $200 million flood insurance policy except when the flood occurs in a “high-hazard flood zone,” which they define as a 100-year flood plain or the equivalent.

Opry Mills mall, which is built on the former Opryland USA theme park site, was flooded on May 2-3 when the Cumberland River flooded and enveloped much of Nashville’s metro area. It contains more than 100 tenants.