Samsung Chip Plant Sues Insurer Over $400 Million Storm Claims

A Samsung Electronics Co.semiconductor plant in Texas sued its insurer over $400 million in damage claims tied to a power blackout during a deadly winter storm in 2021.

The federal lawsuit filed Monday against Factory Mutual Insurance Co.said the Austin plant sustained “catastrophic losses” from property damage and lost business. The insurer refused to cover the full cost as part of a “broader scheme” to underpay all storm-related claims by Texas policyholders, Samsung said.

Factory Mutual paid Samsung $126 million of the $400 million claim, citing policy exclusions for events that occur off the insured property, according to ...