Before mediation began, Paramount and Federal Insurance Company settled an ongoing lawsuit over a breach of their COVID-19 policy agreement. The lawsuit filed by Paramount claimed that the insurance company broke its $100 million agreement that provided COVID-19 coverage for their film “Mission: Impossible — Dead Reckoning.”
According to filings, “In August 2021, Paramount filed a lawsuit claiming that Federal Insurance owed the studio the full $100 million policy after production on the seventh “Mission: Impossible” film paused in February 2020 due to a positive COVID-19 test by an unidentified crew member.”
“Federal Insurance only agreed to pay $5 million for the production delay, which lasted five months, arguing that there was no evidence that the infected production members “could not continue their duties,” even though they could have spread the virus to the rest of the cast and crew.”
“Federal contended that only part of Paramount’s claimed losses were covered under the Policy,” reads the complaint. “Specifically, on July 1, 2020, Federal wrote to Paramount, stating that it would pay for the losses caused by the covered person’s illness in February 2020 subject to its adjustment of the submitted covered expenses. However, Federal stated that the $100,000,000 Cast coverage was not available for most of the remaining portions of Paramount’s losses.”
“Federal claimed that Paramount’s losses arising from the pandemic, orders of civil authorities, and the need to mitigate could only be covered under the Policy’s Civil Authority coverage, and then that all the losses would be subject to a single $1,000,000 limit of liability,” the filing continues.
“Mission: Impossible — Dead Reckoning” is set to be released in two parts, with part one being released on July 14, 2023, and part two on June 28, 2024.
– Excerpt from an article for The Wrap by Jeremy Fuster. Read the full article here.
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