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05-Jan-2013

PHOTO CAPTION: Fisker Karmas damaged at Port of Newark from flooding caused by Superstorm Sandy.

Fisker Autmotive Launches Lawsuit Against Insurance Company

XL Insurance denies coverage on the loss of 338 Karmas flooded during Hurricane Sandy.

On the tail end of a very difficult year for electric car company Fisker Automotive, the company reveals that its insurance claim for 338 Karmas, worth $33 million, was denied by the insurance company, and the luxury plug-in hybrid carmakers is now suing XL Insurance America in court.

The electric car startup has filed a lawsuit charging insurance company XL Insurance America with breach of contract for denying coverage of its claim after 338 of its Karma cars were destroyed due to flooding in Superstorm Sandy. The cars were valued by Fisker to be worth $33 million, and Reuters first reported the lawsuit.

The 338 cars were being held at Port Newark in New Jersey, and during the storm, the cars were “submerged in more than five feet of seawater, resulting in their complete destruction,” says Fisker in the suit. XL denied coverage of the claim on Dec. 20, 2012, and Fisker filed the lawsuit on Dec. 28, 2012.

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