Metallica Denied Insurance Coverage for Canceled International Concerts

By Chuck Niblick

Metallica was recently denied insurance coverage for several canceled international concerts due to COVID-19 based on a policy exclusion that precluded coverage when a venue was closed by order of any government as a result of a "communicable disease." The globally famous metal band tried to argue that the language was ambiguous because they were not themselves fearful or threatened by COVID-19. However, this was quickly shut down because there was no requirement under the policy that the insureds be fearful or threatened by the "communicable disease." Additionally, they failed to introduce any evidence that called into question the geographic or temporal origins of the virus, meaning they did not raise an issue of fact as to the other phrases they claimed to be ambiguous. Finally, Metallica was unable to raise an issue of fact that COVID-19 was not the cause of the cancellations. You can read the court's opinion here.

This is another case among many across the country in which the courts have sided with insurers with respect to claims related to COVID-19.