UTA Sues Insurance Companies for Withholding COVID-19 Coverage, Claims $150 Million in Losses

Lindsey Ellefson
·1-min read

United Talent Agency sued two insurance companies Friday for withholding COVID-19 coverage, alleging breach of contract.

UTA went after Vigilant and Federal insurance companies for $150 million in losses. Both are members of the Chubb group of insurers.

The complaint is for not only breach of contract, but tortious breach of the implied covenant of good faith and fair dealing as well as declaratory relief. Lawyers are seeking a jury trial.

In the complaint, reviewed by TheWrap, the agency explained through its lawyers that “like thousands of other businesses,” UTA halted its business when the pandemic hit the United States, resulting in financial losses, which included “lost profits, lost commissions and lost business opportunities.”

“When UTA turned to Vigilant, its commercial property and business interruption insurer, UTA reasonably expected Vigilant to afford coverage for UTA’s financial losses,” says the complaint. “However, instead of honoring its promises to UTA, Vigilant has wrongfully withheld the policy benefits that UTA is entitled to receive – and that it needs to weather the circumstances associated with the spread of SARS-CoV-2 and actions to ‘flatten the curve,’ rebound from their financial losses, and continue operating as productive members of California’s economy.”

Lawyers from Pasich LLP filed the complaint in a Los Angeles superior court Friday.

Representatives for the two Chubb insurers did not immediately return a request for comment.

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