The manufacturing company behind morning show Lost over $125 million in insurance coverage claims as a result of filming delays caused by COVID-19.
A federal judge has dismissed a lawsuit brought by Always Smiling Productions against Chubb National Insurance Company, according to a ruling issued Tuesday. Reinforcing the jurisprudence in favor of insurers, Federal District Judge Fernando Olguín ruled that “direct physical loss or damage” policies do not trigger coverage.
The same fate befell the claims by Creative Artists Agency and United Talent Agency against their insurers.
In March 2020, Chubb was informed by Always Smiling Productions that it was suspending production on the second season of the Apple TV+ series after 13 days of filming. The insurer agreed to pay $1 million under civil production authority coverage for government claims, but declined to cover more. The production company, which had a $125 million coverage, sued in July 2021 in federal court in California. He estimated the loss at $44 million.
The case, like others, was about whether the virus caused physical damage that prevented the use of the facilities. morning show
Chubb argued that neither stay-at-home orders nor temporary loss of use of property constituted physical harm. In particular, he argued that the presence of COVID-19 does not trigger coverage “because the virus affects people, not goods.”
At the same time, Always Smiling Productions argued that COVID-19 is “physically changing … the surfaces of the properties it anchors”.
The judge was not convinced. “Here, the Court is not satisfied that the plaintiff sufficiently alleges a ‘physical alteration of his property’ to nullify the substantive provisions,” he wrote.
Olguín pointed to other cases that similarly concluded that the plaintiffs did not establish direct physical harm, even though COVID-19 transforms properties such as air and indoor surfaces into life-threatening conditions. He concluded that the virus can be removed from surfaces using common cleaning materials.
According to Penn Law’s COVID Coverage Litigation Tracker, there have been over 2,300 lawsuits against insurers. Of the 663 in federal court, about 96 percent were acquitted.
While most COVID-19 insurance claims were denied, some companies were able to reach agreements with insurers. In July, Paramount filed a lawsuit against a federal insurer that accused the Chubb division of refusing to honor the terms of its insurance policy. Mission: Impossible – Dead Accounts Part One. This case was different, as the studio argued that its policy should have been triggered when unidentified cast members contracted the virus. Under the remote coverage clause, Federal agreed to pay “damages” that Paramount would “directly and exclusively withhold.”[s] in relation to the insurance procedure by reason of any insured person(s) who are necessarily prevented by death, injury, illness or secuestro… from starting or continuing to perform their respective functions in the insured procedure”, dice the demand.
Source: Hollywood Reporter
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
