Blue Man Group is suing their insurance company claiming they were left to settle a lawsuit on their own after the insurance company refused their claim.
According to court documents obtained by The Blast, BMG claims they went to their insurer, Ironshore Indemnity, after they were sued by one of the group’s early collaborators seeking royalties.
BMG says Ironshore initially agreed to cover 70% of the costs of the defense but ultimately changed their mind. Ironshore argued that the claim arose before the policy kicked in and eventually refused to provide coverage.
Before the lawsuit went to trial, BMG says they requested $1.4 million from Ironshore to go towards a proposed settlement, but they refused.
The lawsuit went to trial and eventually BMG settled “for an amount greater than the Policy limits of $3,000,000. [Blue Man Group] requested that Ironshore pay the remaining value of the Policy as indemnification for the settlement amount. Ironshore refused.”
Blue Man Group is suing for the $2,000,000 they claim Ironshore should have had to pay up as part of their insurance agreement.