Lloyd's of London is counter-suing Kanye West, after he filed legal papers against them earlier this month.
The insurance firm claimed there are "substantial irregularities" in the stars medical history, and said it does not owe him a penny.
Kanye's lawyers had said insurers were refusing to pay out, saying they were claiming his marijuana habit was the cause of the cancellation.
The lawsuit was originally filed for $10m (£7.7m).
Lawyers for Lloyd's of London responded to Kanye West's touring company, Very Good Touring, denying they implied Kanye's "use of marijuana provides the sole basis to deny the claim".
They say they can't say any more because of a non-disclosure agreement but point to clauses in the policy that state use of illegal drugs, prescription drugs not as prescribed and alcohol would make any claim invalid.
An independent medical examiner confirmed Kanye was unable to continue with the tour, but Lloyd's want "further relief" and have demanded a trial by jury.
In response to Lloyd's counter-suing, the artist's lawyer Howard King said in a statement: "Lloyd's counter-claim for declaratory relief is the same generic response Lloyd's files in all cases when they don't want to honour a legitimate claim but can't find a factual basis to deny a claim.
"We look forward to the day a jury awards our client the full amount of the policy he purchased, plus interest at 10% per annum, along with punitive damages."