In a previous blog post, we discussed Kanye West's touring company, Very Good Touring, Inc. ("Very Good"), trial of their insurer, Lloyd's of London ("Lloyd's"), to hold back almost $ 10 million in coverage after the suspension of exhibitions on the West's "Life of Pablo" Tour. On Tuesday, August 29, 2017, Lloyd's opposition to Very Good and West replied that the loss was due to non-compliance.
Without any specificity, Lloyds claims that its investigation revealed, among other things, "Irregularities" in Western medical history and that Very Good cautiously concealed and / or distorted relevant facts to prevent the insurer's investigation. However, Lloyd acknowledges that "[has] has not been able to reach a final conclusion [regarding coverage] … from this date …. " (emphasis added). Lloyd s cites the confidential nature of the issues involved in the trial as a basis for not providing detailed justification for keeping payments for coverage.
The counterclaim shows how long the insurers will go to delay or avoid payment of claims, even though coverage is straightforward. For example, under an event cancellation policy, it is clear that the policyholder will be covered for claims arising from a canceled event. The insurance actor's tactics for extending investigations, without any basis for doing so, for searching for facts that can fit politically or for limitation underline the importance of carefully considering and negotiating policy formulation. Unnecessary or excessive terms or provisions should be erased or limited in scope. Such policy language analysis helps to minimize the insurer's ability to rely on such rules in a way they were never expected to apply. The case is Very Good Touring, Inc. by Cathedral Syndicate, et al., No. 2: 1