Fisker sues insurance company after it refuses claim for flooded Karmas

Fisker filed suit against the insurer in the New York Supreme Court on Friday, saying that the ruined Karmas, worth about $33 million.

 

Fisker Automotive just can’t catch a break these days. With production at a standstill thanks to the bankruptcy of sole battery supplier A123, Superstorm Sandy piled on with a flood that destroyed 338 new Karma sedans that were awaiting shipment at Port Newark, New Jersey. Now Fisker’s insurance company, the Irish-owned XL Insurance America, says it won’t pay.
 
Fisker filed suit against the insurer in the New York Supreme Court on Friday, saying that the ruined Karmas, worth about $33 million, should be covered by its policy, which covers the company for up to $100 million in losses from named storms such as Sandy. A partner at Fisker’s law firm told Reuters that the dispute centered on whether the cars were “in transit” or not.
 
This promises to be a long and highly-publicized courtroom drama, and it may be the first of many. An estimated 10,000 vehicles, belonging to various automakers, went to a watery grave that day in New Jersey.
 
 
Image: Fisker
Source: Reuters