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Will Lloyd's Tell Jackson Concert Promoters to Beat It?

August 9, 2009

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At the time of his June death, Michael Jackson was about to embark on a final comeback tour in London. As is typical for such high profile concerts, contingency risk insurance was procured through the London market. The Policy excluded from coverage "any loss directly or indirectly arising out of, contributed to, by or resulting from . . . the illegal possession or illicit taking of drugs and their effects." It appears that the Policy does not define the terms "illegal possession" or "illicit drugs." It has been widely reported that Michael Jackson's death resulted, in whole or in part, from his use of a cocktail of prescription medications. The questions Lloyd's will have to face are: (a) was Jackson lawfully in possession of the medications; and (b) was his use (i.e. taking of them) illicit? Some $18,000,000 in insurance coverage rests in the answers. One thing is for sure -- it's certain to be an insurance "Thriller."

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