Pa. Healthcare Network Sues Insurer for COVID-19 Business Interruption Losses

PITTSBURGH — A Pennsylvania-based healthcare network has sued American Guarantee and Liability Insurance Co. for reimbursement of its COVID-19 business interruption losses, alleging coverage under the policy’s “Interruption by Communicable Disease” provision was triggered.

In a complaint removed to the U.S. District Court for the Western District of Pennsylvania on July 29, Allegheny Health Network (AHN) says it sustained “direct physical loss of or damage caused by a Covered Cause of Loss” at its insured healthcare facilities, as required by the policy.

AHN is an integrated health network with 13 hospitals, approximately 21,000 employees, and hundreds of locations providing a …