Aspen Claims Service

Concert Promoter’s COVID BI Suit Allowed To Proceed

 Monday, February 7, 2022

 Business Insurance

A federal district court in California has refused to dismiss COVID-19 business interruption coverage filed by a concert promoter against Factory Mutual Insurance Co.

The U.S. District Court in Los Angeles held in Thursday’s ruling in Live Nation Entertainment Inc. v. Factory Mutual Insurance Co. that it was swayed by the position that COVID-19’s presence ‘can cause physical intrusion that affects the integrity of a property.’

Beverly Hills-based Live Nation, which sought coverage under its all-risk policy with Factory Mutual, said that in 2020 it had canceled more than 5,000 concerts and postponed nearly 6,000 shows until 2021 because of the pandemic.

Live Nation’s coverage included ‘communicable disease response’ coverage and coverage for ‘interruption by communicable disease.’ Coverage under each of the communicable disease provisions is limited to $1 million.

‘The Complaint sufficiently alleges that infectious respiratory droplets, which transmit COVID-19, are physical objects that may alter the property on which they land and remain,’ the ruling said.