Major Broadway Theater Owner Jujamcyn Sues Insurance Companies Over Paltry COVID Payout

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In a lawsuit that offers a glimpse of COVID-19’s economic threat to the Broadway industry, Jujamcyn Theaters, owner of five major Broadway venues, is suing its insurance companies after the i…

, filed the suit this week in the U.S. District Court for the Southern District of New York alleging the Chubb group’s Federal Insurance Company and Pacific Indemnity Company have denied claims under a property insurance policy and paid out only $250,000 for all five theaters under business interruption insurance.

“There is no date set or anticipated by which theaters will be permitted to reopen in any capacity,” Jujamcyn’s suit states. . “There is also no set date set or anticipated by which theaters will be permitted to reopen at full capacity .”owners like Jujamcyn will be permitted to open—in any capacity—anytime soon. As a result, Jujamcyn has suffered, and continues to suffer, substantial financial losses.

The Federal and Pacific insurance companies, the suit claims, “sold Jujamcyn insurance policies that together provided tens of millions of dollars of insurance and promised a broad blanket of coverage for business income and other losses. After the outbreak of the pandemic and the issuance of various closure orders, Jujamcyn turned to Federal and Pacific.

 

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Jujamcyn also fired employees with over 12 years service and no severance.

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