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‘The Morning Show’ producer sues Chubb unit over BI coverage

“The Morning Show.”

The company that produces the cable TV show “The Morning Show” has filed a COVID-19-related business interruption lawsuit against a Chubb Ltd. unit, charging breach of contract and bad faith.

Always Smiling Productions LLC, which produces the show that debuted on Apple TV+ in November 2019, charges in the suit filed in U.S. District Court in Los Angeles on Friday that Chubb National Insurance Co. refused to pay its business interruption claim in connection with the production’s COVID-19-related shutdown in March 2020 because it had not suffered “direct or physical loss or damage,” according to the lawsuit, Always Smiling Productions  LLC v. Chubb National Insurance Co.

Culver City, California-based Always Smiling said in the lawsuit that its policy, which did not have a virus exclusion, provided $125 million in cast coverage and $1 million each for imminent peril, civil or military authority, and ingress and egress coverages.

Under ingress and egress coverage, Chubb agreed to pay for the actual production loss incurred during impairment of an insured production when access from a location is prevented because of direct physical loss or damage to property at a premises, according to the lawsuit.

The lawsuit says Chubb paid Always Smiling $1 million under its civil authority coverage in June, although its loss exceeded $44 million.

It said the insurer also refused to renew its policy past November 2020.

A Chubb spokesman said in a statement the insurer does not comment on legal matters as a matter of policy.