Insurer Says Virus Did Not Cause Radiology Practice to Incur Property Damage

TOPEKA, Kan. — Continental Casualty Co. has moved to dismiss a Kansas City radiology practice’s lawsuit seeking coverage for COVID-19-related business interruption losses, arguing that the virus does not cause direct physical loss or damage to property.

In an Aug. 14 motion filed in the U.S. District Court for the District of Kansas, the insurer says it is not liable to reimburse Alliance Radiology for its alleged losses because the practice has not alleged that property at any of its covered locations suffered direct physical loss or damage. Nor does it allege that access to its covered locations was prohibited …