From Fisker’s perspective, the loss was a minor inconvenience, as it believed the inventory was covered by its insurer, XL Insurance America. On November 13, Fisker filed an insurance claim for its loss, which was denied by the insurance company on December 20.
The reasons are likely complex, but boil down to semantics over whether or not the cars were in transit at the time of the loss. When the claim was denied, Fisker filed suit against XL Insurance America, hoping to recover something for its loss.
As Bloomberg reports, Fisker and XL Insurance have now mutually agreed to drop the lawsuit, though no details regarding its termination were given. Fisker spokesman Roger Ormisher did say that the two parties , “were able to successfully reach an out-of-court agreement that resolves their coverage dispute.”
The terms of the agreement between Fisker and XL Insurance America remain confidential, but it’s likely that Fisker accepted a partial payment for the loss in exchange for dropping what could have been an expensive and protracted legal battle. Fisker and XL Insurance have even agreed to maintain their business relationship.
From Fisker’s perspective, such a fight would likely have been viewed as a needless distraction. It’s got bigger things on its plate these days, including a potential sale to Chinese investors Geely or Dongfeng.