Live Nation Suing Insurance Company For Pandemic Losses

Live Nation

LIVE NATION is suing its insurance company for refusing to cover hundreds of millions in losses caused by the coronavirus pandemic.

In a new lawsuit filed in CALIFORNIA FEDERAL COURT on FRIDAY, JANUARY 29th, LIVE NATION claims that FACTORY MUTUAL is refusing to honor the premium policy it sold the promoter despite language that communicable diseases like COVID-19 were covered.

Several companies say the RHODE ISLAND-based insurer has failed to pay out claims on its GLOBAL ADVANTAGE ALLRISK property insurance policy. The touring giant purchased the policy on JUNE 1st, 2019, for coverage through JUNE 1st, 2020, and it “specifically designates communicable disease as a covered cause of loss.”

At issue is the policy’s property damage section, which LIVE NATION insists is “meant to protect the insured against all risks of loss, whether known or unknown” with enhancements added to the coverage protecting “against loss of income following a disaster, wherever you operate, or however indirect your connection to the loss.”

Other companies currently suing FACTORY MUTUAL include RALPH LAUREN, CINEMARK, NEW YORK UNIVERSITY and the ATLANTA FALCONS. 

While FACTORY MUTUAL has “failed to acknowledge coverage" for LIVE NATION’s claim, a number of recent court rulings foreshadow its legal defense — that the provision covering property loss and damage only applies to physical damage and not losses caused by mandated closures.

Lawyers for LIVE NATION are seeking declaratory relief, essentially finding that its claims are covered in its policy, and allow the promoter to proceed with a breach of contract suit against the insurer.

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