Mission: Impossible 7 Dead Reckoning Part One, starring Tom Cruise, may not have ended as a complete failure. Despite suffering a significant loss of $40 million, Paramount Studio’s lawsuit against their insurance company for not covering Covid costs during the production delay has resulted in a substantial financial gain. This is especially important considering the underwhelming box office performance due to the competition from Barbie and Oppenheimer.
The production of the seventh instalment of Mission: Impossible franchise faced seven delays between 2020 and 2021 due to the pandemic. According to the lawsuit, the studio’s insurer, Chubb, initially offered to pay only $1 million, despite having a cast insurance policy with a coverage limit of $100 million.
Collider reports that Paramount Studios has received £57 million (approximately $71 million) from their Swiss insurer Chubb due to the production delay caused by the global Covid-19 pandemic and the accompanying filming restrictions. When the studio requested compensation for the delay, they were initially given $5.5 million, significantly lower than the $100 million coverage stated by the insurer.
The insurance payment may help offset the alleged losses suffered by Paramount Studios at the box office. According to FandomWire, Mission: Impossible 7, with a budget of $291 million, needed to earn over $600 million to break even. Unfortunately, it fell short by only $40 million, earning $560 million globally. The insurance money bridged the gap, ensuring the film reached the break-even point.
Mission: Impossible 7 may have faced some challenges due to the release of Barbie and Oppenheimer shortly after its own release. However, fans can expect the return of Ethan Hunt in Mission: Impossible Dead Reckoning Part Two, which is anticipated to be a massive success.