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Live Nation sues insurer over COVID claim
By Chris Cooke | Published on Wednesday 3 February 2021
Live Nation in the US has sued insurance firm Factory Mutual over its failure to make good on losses incurred by the live music giant as a result of the COVID-19 pandemic.
In a lawsuit filed last week, Live Nation argues that its wide-ranging and costly insurance policy from Factory Mutual provided cover for losses made when its venues and other properties were unable to operate as a result of a communicable disease. Therefore the insurer should compensate the concert promoter and venue owner for lost income as a result of venues being shut and shows being cancelled because of regulations put in place in response to the COVID-19 crisis.
Among the stats contained in Live Nation’s lawsuit are that 150 of the firm’s American venues were initially closed as COVID-19 regulations went into effect across the US, and 5000 shows were cancelled between March and September 2020 with 6000 more pushed back into 2021. Meanwhile, 62 employees contracted the virus in the first few months of the pandemic.
Factory Mutual, the legal filing says, is yet to compensate Live Nation for its COVID-caused losses. The insurer hasn’t actually outright rejected the live firm’s claim, but nor has it confirmed that it plans to provide coverage.
Live Nation is not the first to go legal in a dispute over COVID coverage from Factory Mutual. In some other cases a key debate has been whether insurance cover for “property loss” applies to losses incurred when properties are forced to close because of a pandemic, or only physical damage to a property.
However, Live Nation argues that there are several elements of its Factory Mutual policy that cover the kinds of losses it has incurred as a result of COVID-19, even if the “property loss” clause is interpreted narrowly.
The insurance firm hasn’t commented on the specifics of its dispute with Live Nation. However, a spokesperson told Bloomberg: “[Factory Mutual] values the long-term relationships we have with our policyholders and we are proud in leading the industry for claims service. It is unfortunate when legal matters arise because we strongly believe our insurance policies are clear on the coverage provided”.
