Jujamcyn Files Lawsuit Against Insurance Companies For Failing to Cover Losses Due to the Health Crisis

Jujamcyn Theaters has filed a lawsuit against its insurance companies, Federal Insurance Company and Pacific Indemnity Company, for failing to cover losses suffered during the COVID-19 pandemic, Forbes reports.

Jujamcyn Theaters, like the rest of the Broadway houses, have been closed since March 12. While the company's policy with Federal Insurance Company does not specifically mention pandemics, it requires the insurance firm to pay any losses "incur[red] due to the actual impairment of [its] operations, directly caused by the prohibition of access to [its] premises ... by a civil authority."

Lawyers for Jujamcyn say that the company expected Federal to pay for Jujamcyn's financial losses, but their insurance claim was denied. Federal Insurance Company said that its policy only covers losses resulting from "physical loss or damage" to the theaters, which were not caused by the pandemic.

"Generally, 'physical loss or damage' means that the physical structure or physical characteristics of the property have been altered by a 'covered peril'," stated representatives for Federal Insurance Company. They also argued that access to the theaters is not actually prohibited, as "regular check-ins to ensure all locations are okay have been conducted."

In addition, Jujamcyn's other insurance company, Pacific Indemnity Company, limits the payout for each "covered occurrence" to $250,000. Pacific Indemnity Company determined that the pandemic was just one "covered occurrence" despite all five of Jujamcyn's theaters being affected.

"Pacific deprived Jujamcyn of the financial protection that it needs to weather the past, present and future circumstances associated with the spread of SARS-CoV-2 and actions to 'flatten the curve,' rebound from its financial losses, and continue operating," attorneys stated.

Read the original story on Forbes.

Jujamcyn operates five Broadway theatres, including the St. James Theatre, Al Hirschfeld Theatre (currently home to Moulin Rouge!), August Wilson Theatre (currently home to Mean Girls), Eugene O'Neill Theatre (currently home to The Book of Mormon), and Walter Kerr Theatre (currently home to Hadestown).