Lloyd's of London reportedly sued AEG Live and Jackson's company on Monday over a policy designed to protect concert promoters if the King of Pop could not carry out the tour.
The UK firm claims in the lawsuit, filed in the Superior Court in Los Angeles, that the defendants failed to give them medical information and details about Jackson's doctor.
Lloyd's issued a non-appearance concert cancellation policy in April 2009 – two months before Jackson was scheduled to start the ill-fated tour.
The policy would cover $17.5m in liability if anything went wrong, according to court papers.
Just days after Jackson's death, a lawyer acting for AEG Live issued a claim under the policy and submitted Jackson's death certificate along with it.
But the insurance firm claims that the promoters should have told them about the 50-year-old singer's medical history and “his apparent prescription drug use and/or drug addiction”.
It goes on to say that a medical examination of Jackson required by the insurance policy was never carried out.
Lloyd's lawsuit also claims that it has been trying to get information from AEG about Jackson and his medic, Dr Conrad Murray, since December 2009.
Murray has been charged with involuntary manslaughter in relation to Jackson's death and will stand trial later this year.