Health Supplement Company Sues Berkley Over Data Center Losses

A sports nutrition and supplement provider sued a W. R. Berkley Corp. unit after the insurer declined to fully pay for property damage and business income loss following a burst water pipe at a data center hosting servers for Bodybuilding.com.

StarNet Insurance Co. breached its policy and committed bad faith by failing to pay the roughly $2 million total claim, Omni Retail Enterprises LLC said in a complaint filed Thursday in the US District Court for the District of Idaho.

Omni filed the suit as an assignee of Boise, Idaho-based Vitalize LLC, which was the named insured party under the ...