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In the case of Big Draw Entertainment LLC v. Beazley Insurance Services Inc. et al., in the Superior Court of the State of New Jersey, County of Hudson, Big Draw said its insurer failed to indemnify it from losses suffered from the cancellation of two Deep Purple rock shows during their concert tour in November 2018.

Big Draw Entertainment LLC (“Big Draw”) was the financial backer for the Deep Purple concert tour in Mexico. This Friday, Big Draw filed suit in New Jersey, against Beazley Insurance Services Inc. (“Beazley”) for denying coverage of two canceled shows, claiming the insurers failed to conduct a sufficient investigation of Big Draw’s claim.

Big Draw’s complaint alleges breach-of-contract and bad faith against Beazley and Everest Indemnity Insurance Company.

The entertainment company accused the insurer of conducting a sub-par investigation into their claim, referring to it as "limited in nature and narrow scope." Big Draw’s complaint argues that Beazley’s inadequate investigation into its claims demonstrated a "predetermined intent" to deny its claim.

Big Draw said the "Defendants did not search the policy for grounds for coverage that would protect BDE, but rather searched policy and conducted its investigation for the purpose of finding a basis to deny coverage," and that Beazley’s conduct was in bad faith.

The entertainment giant said it obtained an “event cancellation insurance policy” from Beazley that would reimburse it for any losses relating to even just a "potential cancellation, abandonment, disruption or rescheduling of any of the shows."

The complaint also placed equal liability on Beazley, and Everest Insurance Co., saying each shared an equal percentage of the policy limit.

There were two final shows of the tour, that were scheduled for Nov. 21st and 24th of 2018, but were canceled due to an "abrupt loss" of sound and light equipment, according to the complaint.

Big Draw claims that each show was set up for different indemnity limits based on an evaluation of anticipated losses that could arise from a covered cancellation.

The show that was scheduled on Nov. 21st had a reimbursement limit of more than $500,000, and the Nov. 24th show had an indemnity limit of nearly $800,000.

Big Draw says it submitted its claim to Beazley on Nov. 24, 2018, and that Premier Insurance Services conducted the investigation and acted as the adjustor for the claim.

According to the complaint, Beazley and their proxy, Premier Insurance failed to interview anyone with relevant information. Big Draw says they didn’t even bother talking to people who "had the most knowledge of the circumstances of the cancellations."

Big Draw further argues that Beazley unreasonably delayed its coverage determination, noting that it did not receive a coverage denial letter from Beazley until November 2020.

Big Draw Entertainment LLC is represented by attorneys, Kerry Brian Flowers and Michele Daitz of Flowers & O'Brien LLC.

It is not yet known who is representing Beazley Insurance Services Inc., or Everest Insurance Co., but as always, the USA Herald will keep you up-to-date on any new developments in this case.