Ben Affleck film center of new COVID-19 coverage case
The suit may be the first to test whether movie and TV insurers will be forced to provide coverage for delays caused by the pandemic.
The producers of an upcoming Ben Affleck film titled “Hypnotic” have filed a suit against their insurer, Chubb, for refusing to extend their policy to account for the COVID-19 pandemic.
“Hypnotic” is an action film, starring Affleck, that was set to go to production in April but was postponed due to the pandemic, according to the complaint.
Before the production of the movie was to begin, production company Hoosegow purchased a $58 million film producers risk insurance policy from Chubb. The insurance policy protects insured producers when events occur that preclude or disrupt the production of a movie or television show. Chubb’s custom is to extend the policy period until “such reasonable time as the production is completed.”
The complaint alleges that when the policy was sold, Chubb expressly represented in writing that if production were delayed, the policy period would be extended. However, when filming of “Hypnotic” was postponed, Chubb refused to extend the policy. The policy had an expiration date of October 28, 2020, which would have covered the entire movie production under the original production schedule. According to the complaint, Chubb only offered to renew the policy if it included the addition of an exclusion applicable to COVID-19 losses. The suit contends that without COVID-19 coverage, the film will likely not be able to proceed to production.
Hoosegow contacted Chubb asking for the coverage to be extended, and it pointed to Chubb’s customary practice and the express representation. Chubb allegedly refused to address the concerns and would only discuss the renewal of the policy with the virus exclusion. Hoosegow claims that this conduct constitutes a breach of the insurance policy and violates the implied covenant of good faith and fair dealing.
The suit is Hoosegow (Hypnotic) Productions Inc., v. Chubb National Insurance Company, Case No. 2:20-cv-08253.
Editor’s Note: Insurers are now refusing to sell policies that would cover COVID-19 losses. If the original policy in this suit were to expire, the film producers would not be able to replace it.
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