The promoter of Live Nation has said they have lost revenue equating to hundreds of millions since the pandemic shut down its event touring, but their insurer Factory Mutual is refusing to pay out on their policy.
The organisers of Live Nation are suing their insurance company for refusing to cover hundreds of millions in losses they have incurred during the event restrictions implemented by local governments during the coronavirus pandemic.
The lawsuit was presented in a California federal court on the 29th of January, and Live Nation claims that their insurance company Factory Mutual is refusing to honour the premium policy it sold the promoter, claiming that the policy’s terms of contract cover communicable diseases like COVID-19.
Live Nation is one of a growing number of company’s that claim that Factory Mutual has failed to pay out claims on its Global Advantage All-Risk property insurance policy.
It’s been stated that Live Nation purchased their 12month insurance policy on June 1st in 2019 at what they describe as “at significant expense”.
COVID-19 has hit the music industry hard, and events companies not being able to run events comes at a huge financial loss, as sometimes there are overheads that still have to be paid even if the event is cancelled.
News of insurance companies potentially failing to pay out is a worrying sign for the events already struggling to deal with cancelations due to the pandemic.