Live Nation filed a lawsuit against its insurance company for allegedly refusing to cover hundreds of millions of dollars in losses caused by the COVID-19 pandemic.
On Jan. 29, Live Nation sued insurance company Factory Mutual claiming the company is refusing to uphold its premium policy it sold the entertainment and promotion company even though the insurance package includes coverage for communicable diseases like Rona.
The legal document was filed in California federal court, Billboard reports. Live Nation bought the Factory Mutual’s insurance “at a significant expense” on June 1, 2019, and it states that the company is covered through June 1, 2020. The policy “specifically designates communicable disease as a covered cause of loss.” In the claim, Live Nation states the coronavirus outbreak has affected 35 companies, infecting 62 of its employees during the pandemic’s early months. It adds that “an unprecedented and nearly complete shut-down of the live music industry” has led to Live Nation losing billions of dollars.
Live Nation claims the company’s Global Advantage portion of the policy is where the issue lies. Live Nation claims it is “meant to protect the insured against all risks of loss, whether known or unknown,” with enhancements added to the coverage that would protect “against loss of income following a disaster, wherever you operate, or however indirect your connection to the loss.” Live Nation included a copy of the policy in the lawsuit, Billboard reports. It goes on to say that usually “pathogens, viruses or other disease-causing agents” are hardly ever covered. Still, Future Mutual’s policy “expressly includes ‘Communicable Disease’ as a covered cause of loss.” So far, Factory Mutual has allegedly “failed to acknowledge coverage” for Live Nation’s claim.
Live Nation and several other companies, including Ralph Lauren, Cinemark, New York University, and the Atlanta Falcons, are all suing Factory Mutual over unpaid out claims related to Rona.