Mission: Impossible 7 studio sues insurers over COVID payouts

Mission: Impossible 7’s studio is suing its insurance company over an alleged failure to pay out COVID insurance money.

Paramount lodged the case against Federal Insurance Company at a court in California.

The production of the latest Mission: Impossible instalment – starring Tom Cruise as Ethan Hunt – has been plagued by complications from COVID.

Filming started in Venice, Italy, in February 2020, but was shut down less than a month later due to a “covered” person getting ill.

Production was again delayed by the global onset of the pandemic.

Filming was later moved to the UK, but was halted and restarted numerous times.

The most recent shutdown – the seventh – came in June after a member of the cast or crew tested positive for COVID.

According to the lawsuit – filed in a federal court – Federal Insurance Company has refused to pay out for the disruption.

Documents lodged in the court accuse the insurers of breach of contract, and breach of the implied covenant of good faith and fair dealing.

Paramount’s team say the studio was covered for losses exceeding $100m (£73m), but Federal Insurance Company argued, the suit says, that some of the losses claimed were only covered to a value of $1m (£730,000).

Paramount is claiming the insurer only paid a “small portion” of the losses, “denying coverage for the majority of them”, and therefore “breached the parties’ contract”.

The 22-page court filing said: “Federal’s conduct is contemptible and has been done with a conscious disregard of Paramount’s rights, constituting oppression, fraud, and/or malice.”

Paramount is seeking unspecified damages as part of the suit.

Other film and television productions have sued their insurers for failing to pay out due to pandemic problems.

Ben Affleck’s film Hypnotic and Apple TV+ drama The Morning Show have also launched lawsuits.

Subscribe to the Backstage podcast on Apple Podcasts, Google Podcasts, Spotify, Spreaker

The firm they are taking action against is owned by Federal Insurance Company’s parent, Chubb National Insurance Company.

Mission: Impossible 7 is due for a May 2022 release.