Paramount Pictures Corp. has settled its coverage disputes with a Chubb Ltd. unit over Covid-19-related delays in production of its “Mission Impossible 7” film.
Details of the settlement were not released.
Los Angeles-based Paramount had more than $100 million in single-loss coverage under its inland marine policy with Chubb unit Federal Insurance Co., which did not include a virus exclusion, according to the complaint in Paramount Pictures Corp. vs. Federal Insurance Co., which was filed in US District Court in Los Angeles in August 2021.
The complaint said production of the popular franchise was halted seven times due to crew illness and covid-related government shutdown orders.
Federal is said to have paid $5 million for losses related to a covered person̵7;s illness in February 2020, but otherwise refused to provide coverage, claiming there was no evidence and that crew members could not continue their duties despite being infected with the virus .
The complaint accused Chubb of breach of contract, breach of the implied covenant of good faith and fair dealing.
The settlement was announced in a court filing on Wednesday.
Attorneys in the case had no comment or did not respond to a request for comment.