Indiana Repertory Theatre Sues Its Insurer Over Virus Coverage

Law 360 has reported that Indiana Repertory Theatre is suing its insurance carrier over business interruption coverage during the current health crisis. It is alleging that it wrongfully said the pandemic is not covered by the theater's policy.

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Indiana Repertory Theater Inc. filed a complaint stating that Cincinnati Casualty Co. told the theater in a letter that a closure as the result of the novel coronavirus does not constitute a physical loss that would trigger the policy.

The theater said: "If Cincinnati had intended to exclude coverage for loss due to a virus it could have included a virus exclusion...Such an exclusion was available to Cincinnati when it created the form it sold to the IRT. Cincinnati included no such exclusion."

In the complaint, the theater alleged that the definition Cincinnati used for physical loss, that it only includes physical effects on the property, does not appear in the policy.

Suzanne Sweeney, managing director of the theater, said in a press release: "The required closure forced us to lay off, furlough or enact pay reductions for over 100 full- and part-time staff, as well as actors, directors and designers," "It wiped out our entire spring season. This is why we bought insurance - to protect the theater and our talented staff in emergencies."

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