Gibson Guitar Sues Insurance Companies
Gibson Guitar is suing two insurance companies who have yet to pay out for damages sustained in the May flood, according to NashvillePost.com. Gibson’s manufacturing facility on Massman Drive suffered over $16 million in damages during the catastrophe.
The guitar maker is suing CNA’s Continental Insurance Co. and Mitsui Sumitomo Insurance. The point of contention, according to Gibson, is that when its insurance policy was rewritten in 2009, the insurer “inexplicably” separated Gibson’s two addresses at 641 and 643 Massman, whereas they had previously been insured as one site.
Gibson maintains that it continued to pay the same premium for what it believed was the same amount of coverage as before the 2009 re-write.
Reports say CNA has offered to settle the dispute by paying $10 million based on the original policy, but Mitsui hasn’t come to the table with a settlement.
I thought it was as straightforward as paying a premium and getting paid out if something disastrous happens, like a river breaking it’s banks!! Silly me..