The City of Los Angeles agency that operates the city’s four airports — Los Angeles World Airports — will receive $5.9 million from an insurance company for business interruption damages that were a result of the terrorist attacks of September 11th, 2001.
“It is believed to be the largest payout by an insurance carrier to a U.S. airport for business losses relating to 9/11,” airport officials said.
“We are pleased to recover a significant portion of our business interruption losses relating to the airport closures caused by the terrorist attacks,” said Cheryl Petersen, airport commission president.
“Our airports were shut down for several days and did not return to their previous levels of activity for a considerable period,” said Petersen.
The airport department submitted a claim for its losses to its insurance carrier and its representative, Westport Insurance and Industrial Risk Insurers, for financial losses sustained at Los Angeles and Ontario International Airports when the Federal Aviation Administration closed all U.S. airports in the wake of the terrorist attacks.
The insurance companies denied the claim and Los Angeles World Airports filed a lawsuit that was scheduled for a jury trial later this year.
A mediator proposed the settlement of $5.9 million in favor of the city airport department.
The two parties agreed to accept the mediator’s proposal, subject to approval by the Los Angeles Board of Referred Powers.