Westfield America to contest Zurich action on World Trade Center
12 November 2001
Countries: United States
Westfield America will vigorously contest a complaint filed inthe Federal Court in New York by Zurich Insurance over a claim forsupplementary insurance on the retail component of the World TradeCenter.
The insurance cover which is the subject of Zurich’s action isseparate from the primary insurance policies arranged on behalf ofSilverstein and Westfield over the World Trade Center.
The Zurich policy in question is a general property insurancewhich covers Westfield America’s entire portfolio and automaticallycovers new properties provided notice of their inclusion in theportfolio is provided to the insurer within 90 days of theacquisition, which is the normal procedure.
This notice was provided to Zurich on September 14, a date whichis immaterial given that Westfield had more than a month before thedeadline for notification expired.
In July, even before the World Trade Center transaction wassettled, Westfield America received written advice from itsinsurance brokers that the Westfield America Property and Liabilityunderwriters had confirmed that the policy in question would act ascontingent coverage over and above that already provided by theprimary policies mentioned above.
Westfield has primary coverage for its interest in the 99-yearlease on the retail component of the World Trade Center under the$3.5 billion ‘per occurrence’ property and business interruptioninsurance policies provided by a consortium of insurance companieswith respect to Westfield and Silverstein’s interests in the WorldTrade Center.
Westfield remains confident that it has adequate insurancecoverage and that the loss of the World Trade Center will not havea material impact on either Westfield Holdings’ earnings or on thedistribution of Westfield America Trust. Westfield America Trust’sinvestment was fully insured for loss of both capital and income,including for terrorist attack.