NBCUniversal, insurer battle over definition of war

After violence broke out in Israel in 2014, an American studio filming there filed an insurance claim – but the insurer says it shouldn’t have to pay

NBCUniversal, insurer battle over definition of war

Insurance News

By Ryan Smith

A television studio and an insurance company are at war over the definition of war.

NBCUniversal is suing Atlantic Specialty Insurance Company for failing to cover “extra expenses” incurred when a television show it was producing was forced to change locations to avoid an armed conflict, according to the Hollywood Reporter.

At the root of the $6.9 million dispute is the 2015 mystery-thriller, Dig. Set in Jerusalem, the now-defunct show was about an American FBI agent investigating a death.

The show was filming in Israel in 2014 when real life intruded. In June of that year, three Israeli teenagers were kidnapped and killed. When the teens’ bodies were found, Israel blamed Hamas militants for the deaths. Hamas responded by firing rockets into Israel, which in turn retaliated with an invasion of Gaza. By the time a cease-fire was declared in August of 2014, about 2,220 Palestinians, 67 Israeli soldiers, and six Israeli civilians were dead, according to the Hollywood Reporter.

The conflict, obviously, made the area unsafe for visitors. In July, NBCUniversal decided to move the production of Dig out of Israel. The show completed filming in New Mexico and Croatia.

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At issue is the studio’s attempt to get Atlantic to cover “extra expenses” incurred during the filming. Atlantic refused coverage, saying that war was excluded under its policy, according to the Hollywood Reporter. The studio sued, maintaining that the Hamas rocket attack was terrorism, not actual war.

“At a time when insurer support was most critical – i.e., when the physical safety of cast and crew was at risk – Atlantic turned its back on Universal and disclaimed any responsibility for the claim,” NBCUniversal said in a court filing.

Atlantic, meanwhile, argues that the exclusion means it doesn’t have to cover “warlike activity,” including insurrection, rebellion, revolution, or the use of a weapon of war.

“Plaintiffs prefer to focus narrowly on the actions of only one of the combatants ― Hamas ― to the exclusion of the other ― Israel ― and characterize the conflict as mere terrorism in the hope of avoiding the war exclusions,” Atlantic said in its own brief. “This position ignores the reality of warfare in the twenty-first century, and the views of their own representatives involved in the filming.”

On Monday, both sides in the case filed motions asking for summary judgment.


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