NEWS: Disney Faces $10 Million Suit Over COVID-19 Shutdown Costs

The COVID-19 pandemic impacted much more than just park operations for the Walt Disney Company.

Former health and safety signage in Disney Springs

Throughout the past year, Disney has faced movie and TV production delays, as cast and crew have needed to quarantine after becoming infected or having been in close contact with the virus. And, now Disney is in a dispute with an insurance company over the loss of funds.

According to Deadline, Fireman’s Fund Insurance has filed a claim against the Walt Disney Company worth $10 million over the loss of funds due to COVID-19 shutdowns.

Black Widow billboard in Disney World

The suit is regarding two claims that Disney made in the past year — one concerning the expenses incurred as a result of cast and crew members who had to quarantine but were otherwise healthy and the other concerning holiday hiatus coverage. But, Fireman’s Fund believes that these scenarios were not covered.

Big Shot ©Disney

Fireman’s Fund contends that the Cast Coverage does not apply to quarantining periods and rather is in place for orders that are “revoking permission to use or prohibiting access to facilities used or to be used in an insured production.”

Soul

And, as for the Holiday Hiatus claim, the insurance company argues that the decision to extend the cast and crew holiday period by an additional 1-2 weeks was up to the discretion of Disney and was not mandated by public health authorities. Though, authorities in Los Angeles, Atlanta, or London had expressed “elevated concern” about the COVID-19 levels during that time.

Currently, the suit remains in the courts and Disney has yet to comment. This is a developing story, so we will share more details as they become available — stay tuned!