Va. Hospital Network Sues Insurer for COVID-19 Business Interruption Losses

ROANOKE, Va. — A group of Virginia hospitals have sued American Guarantee and Liability Insurance Co. in federal court, demanding coverage for losses arising from the COVID-19 pandemic, contending that they have sustained “direct physical loss of or damage” to insured property.

In a March 18 complaint filed in the U.S. District Court for the Western District of Virginia, the hospitals further maintain that the policy at issue does not exclude coverage for losses caused by virus, communicable disease and pandemics.

Plaintiffs are Carilion Clinic, RMH Emergency Service, LLC, Carilion Healthcare Corp., Carilion Behavioral Health Inc., Carilion Emergency Services Inc., …