Paramount to sue insurer over Mission Impossible 7 COVID-19 policy

Sarfaraz RizviWeb Editor

31st Aug, 2021. 03:18 pm

Paramount Studios is suing its insurer, Chubb National Insurance Company, for failing to cover the vast majority of its damages caused by pandemic-related set closures on Mission Impossible 7.

The studio’s lawyers claimed in a lawsuit filed in federal court in California that they had suffered severe losses and damages as a result of being forced to postpone and suspend production of the Tom Cruise starrer “due to Closure Orders affecting different filming locations, cast illnesses, and the need to protect cast and crew and its locations from exposure to SARS-CoV-2.”

A summary of the case:

Between February 2020 and June 2021, the production of Mission Impossible 7, which is set to hit theatres on May 27, 2022, was postponed seven times. Six times, COVID-19 was cited as the cause of the delay.

The studio’s insurance, Chubb, however, has stated that it will only pay $1 million for losses caused by the coronavirus. The amount was determined by the insurer’s “civil authority insurance,” which only covers government-ordered shutdowns.

What is Paramount’s stance on the matter?

  • The insurer’s accusations have been refuted by Paramount. The company had taken out a sizable $100 million insurance policy to cover losses if key cast members, such as Tom Cruise and director Christopher McQuarrie, were unable to work due to illness, kidnapping, or death.
  • The studio claimed that the production halt was due to COVID-19, which should be covered by the insurance coverage because the shutdowns were meant to keep the cast from becoming ill.
  • According to the studio’s court filing, production was suspended in February 2020 because someone insured under the insurance coverage became ill. In connection with the delay, Chubb had paid $ 5 million.
  • Virus outbreaks on the sets in Italy, where the film was produced, and coronavirus regulations in the country caused the production to be further delayed.
  • According to Paramount, the insurer has refused to recognise any additional claims.
  • The claim by Paramount is the latest in a long line of studios suing their insurers for not covering damages caused by the coronavirus. Insurers have previously been sued by Ben Affleck’s Hypnotic and AppleTV+’s The Morning Show.


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