The company operates reputable cinemas and is suing two insurers for the amount of the payments.
Jujamcyn Theaters, operating leading entertainment houses such as “The Book of Mormon”, “Moulin Rouge: The Musical”, “Hadestown” and “Mean Girls”, is suing its insurance companies.
Insurers named in the lawsuit include the Pacific Indemnity Company and the Federal Insurance Company.
According to the Jujamcyn Theaters file, insurance companies only paid $ 250,000 to cover what he claims to be “Tens of millions of dollars” in losses linked to the pandemic crisis.
The company has filed a complaint with the Southern District of New York. He claims that Federal Insurance Company “categorically denied coverage, refusing to pay even a dime to help Jujamcyn.” On the other hand, she said Pacific Indemnity paid the Broadway Theater Company $ 250,000 of what it alleges should have been considerably more under its policy.
Jujamcyn Theaters accuses insurers of knowing and publicly acknowledging their obligation to pay.
“Federal and Pacific knew and publicly acknowledged that they may be required to pay for massive losses in the event of a pandemic. Federal and Pacific also knew they could use common and widely available exclusions so they wouldn’t have to pay for losses associated with the pandemic, ”the lawsuit case said. “However, they decided not to do it here, selling Jujamcyn the Federal All-Hazards Policy and the Pacific All-Hazards Policy and deliberately omitting from the policies any potentially applicable exclusions associated with a pandemic related to the virus.”
Broadway stages closed on March 12 in response to an executive order from Governor Andrew Cuomo, when gatherings of 500 or more people were banned.
The previous week, Jujamcyn Theaters had welcomed more than 48,000 spectators from all over the world. He submitted his claim for loss of business income to the Federal Insurance Company, advising the insurer of a minimum of 7 positive COVID-19 tests from people it employs. However, the insurer refused coverage on the grounds that there had been no “direct loss or damage” that would generally trigger a policy payment. He stressed that Cuomo’s orders did not prohibit access to Broadway theaters, which means employees can still enter and check out buildings.