Live Nation sues insurer for non-payment
Live Nation is suing insurer Factory Mutual (FM) for failing to cover its “unprecedented” losses as a result of the nearly year-long concert business shutdown.
Beverley Hills-based Live Nation, the world’s biggest live music company, is taking legal action against Factory Mutual Insurance Co. in the former’s home state of California for allegedly wrongfully refusing to pay out, despite Live Nation’s policy including business interruption cover from FM.
“Covid-19 has had a dramatic impact on Live Nation’s properties and business, causing severe and unanticipated losses,” reads the complaint, filed in the US district court for central California.
It adds that LN “reasonably” believed that Factory Mutual Insurance Co. would promptly cover its losses, as it has an “all-risks policy” that covers lost income, property damage, extra expenses and, crucially, interruptions from communicable diseases.
In November, leading booking agency UTA similarly sued its insurance provider, Chubb, after being denied compensation for any of its estimated US$150m in losses stemming from the pandemic pandemic.
“We strongly believe our insurance policies are clear on the coverage provided”
In a statement provided to Bloomberg Law, Factory Mutual says it strives to be clear on what its policies cover. “FM Global values the long-term relationships we have with our policyholders and we are proud in leading the industry for claims service,” it reads.
“It is unfortunate when legal matters arise because we strongly believe our insurance policies are clear on the coverage provided.
Despite posting a more than 80% revenue decline in the first nine months of 2020 (the most recent available financial data), Live Nation’s share price recently reached an all-time high of $76.54. At press time, it is just over $70.
Learn more about what the next 12–24 months look like for policies and cover at Insurance: The Big Update, at ILMC on 3 March.