Paramount has reached a confidential settlement with Chubb, its insurer, over claims arising from repeated COVID-19 production delays on Mission: Impossible 7.
The studio sued in August 2021, claiming the insurer tried to limit its losses to just $1 million. Paramount claimed he was owed far more and that the COVID-19 shutdowns should have triggered cast insurance coverage with a $100 million limit.
The two sides were due to begin mediating the dispute on Thursday. But on Wednesday they filed a notice in federal court showing they had reached a settlement.
“A formal written settlement agreement has been prepared and is being commented on and finalized,” the parties said. “The parties expect to sign a definitive written settlement agreement by August 5, 2022.”
Mission: Impossible 7 is now slated for release on July 14, 2023, two years behind its original schedule. Production began in February 2020 as the pandemic began to spread around the world. Ultimately, production had to be stopped seven times.
Chubb paid $5 million for cast insurance for the first shutdown. However, in subsequent closures, the insurer took the position that the cast insurance policy did not fire and that liability was limited to just $1 million under the policy’s “civil authority” provision.
Productions take out cast insurance because of the high costs involved if the director or one of the film stars falls ill or dies during production. Paramount took the position that the cast insurance policy should have been triggered because the closures were intended to prevent client illness. Chubb argued that the productions were halted due to government orders, triggering the Civil Authority’s regulations, which should normally cover events such as riots or hurricanes.
In an amended complaint, Paramount also accused Chubb of attempting to cut coverage of Mission: Impossible 8, which began filming earlier this year. Last October, Chubb told the studio the policy expired on December 31, 2021 and would not be renewed. The studio argued that Chubb promised to extend the policy as needed until production was complete. Paramount also claimed Chubb offered to renew the policy, but only if premiums were drastically increased or coverage greatly reduced.
Mission: Impossible 8 is currently scheduled for release on June 28, 2024.
https://variety.com/2022/film/news/mission-impossible-7-paramount-settlement-chubb-1235328913/ Mission: Impossible 7: Paramount settles insurance lawsuit over delays