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 the lawsuit.

“FM Global has wrongfully, and in bad faith, refused to honor its agreement to insure its full share of Samsung Austin’s covered losses,” the manufacturer said in the lawsuit.

A representative for Factory Mutual Insurance didn’t immediately return a request for comment.

During the blackouts, the Samsung plant was without power for roughly three days and had to spend subsequent days slowly reinstating power to its fabrication units, resulting in business interruption and extra expenses, the company said. The facility also experienced physical damage to its exterior during the freezing weather.

The case is Samsung Austin Semiconductor LLC v. Factory Mutual Insurance Company, 1:23-cv-00114, US District Court, Western District of Texas (Austin).

Photo: SeongJoon Cho/Bloomberg