A new lawsuit filed on January 29 in California’s federal court by Live Nation, declares Factory Mutual has not honored its original policy that it sold to the promoter in which communicable diseases such as COVID-19, were covered and accounted for. To put it in simpler terms, Live Nation and Factory Mutual had previously agreed on an insurance policy that covered various forms of diseases, including COVID-19. Factory Mutual has not been living up to its original policy, by not honoring COVID-19 as part of the original policy. Now, Live Nation has joined a list of other companies who are also disclosing that Factory Mutual has not paid out the appropriate claims that fall under its Global Advantage All-Risk property insurance policy.
According to Billboard, “The touring giant purchased the policy at a significant expense on June 1, 2019, for coverage through June 1, 2020, and specifically designates communicable diseases as a covered cause of loss.” Live Nation estimates that nearly 35 company locations and 62 employees were directly impacted throughout the first couple of months of the pandemic. Live Nation is not the only company that has experienced a similar disservice. Ralph Lauren, Cinemark, New York University, and the Atlanta Falcons are all claiming Factory Mutual has refused to pay out the proper claims that were initially agreed upon.
Live Nation’s legal team has also pointed out more than half a dozen other implications that could be considered affected policy areas. Live Nations suit claims that Factory Mutual has, “Failed to acknowledge coverage for the claim or to pay any of the coverage it owes to Live Nation.” Live Nation will be seeking declaratory relief, which would allow them to proceed with a breach of contract which in turn would allow for a contract suit against the insurer.