Airline in cover fight over post-9/11 claim; War risk insurers seek arbitration.(News)

Business Insurance, March, 2003

Byline: DOUGLAS McLEOD DALLAS-American Airlines Inc. and its war risk insurers are suing each other over the airline's claim for the costs of grounding its planes and reorganizing flight schedules and crews in the wake of the Sept. 11, 2001, terrorist attacks. American Airlines alleges in a suit originally filed in a Texas state court that the unspecified costs are covered loss prevention expenses under its war risk program and that the insurers, led by Lloyd's of London syndicates, have wrongly refused to pay its claim.

The war risk insurers, meanwhile, have responded with ...