CAA Suing Insurer For Failure To Cover Pandemic Losses

CAA has filed a lawsuit against an insurance company in what has become the latest instance of a media and entertainment organization suing an insurer for denying payment on loss claims regarding pandemic shutdowns.

The Hollywood-based agency filed a civil lawsuit against an insurance company. The suit was filed in the Los Angeles Superior Court against Affiliated FM.

The filing stated that the insurer’s ‘bad-faith refusal’ for payment to CAA for claims ‘under broad ‘all-risk’ policies of insurance that CAA purchased from AFM…to cover precisely the types of losses that CAA has sustained as a result of the SARS-CoV-2 pandemic.’

The lawsuit is pursuing payment from AFM, which CAA has accused of breaching written contract and tortious breach of the implied covenant of good faith and fair dealing.

As of the writing of this article, no specific dollar figures have been noted in the suit. Instead, it is seeking declaratory relief which involves compensatory and other damages.