Fisker Automotive has decided to sue XL Group PLC after being refused insurance coverage.

This has to do with those 338 Karmas destroyed by Hurricane Sandy on October 29 while at a shipping facility in the New Jersey port. A total of 10,000 cars from various automakers were destroyed, including thousands of vehicles from Toyota.

Fisker's policy obtained from the insurance firm covers damages of up to 100M USD. It is very important to determine whether the vehicles were in "transit" and if any sublimits are applicable. Fisker wants to obtain a court order which will state the policy covers car loss, along with any damages related to breach of contract plus other remedies.

Gallery: Fisker suing insurance firm over damaged Karmas after Sandy

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