University Hospitals Not Covered for COVID-19 Business Interruption Losses, Ga. Federal Judge Rules

AUGUSTA, Ga. — A Georgia federal judge has ruled that a group of August University hospitals cannot recoup business interruption losses from Affiliated FM Insurance Co. because the alleged presence of COVID-19 at their facilities did not cause “physical loss or damage,” as required by the policy.

In a March 15 order, Chief Judge J. Randal Hall of the U.S. District Court for the Southern District of Georgia further ruled that additional information is needed before it can be determined whether coverage under the policy’s Communicable Disease provision was triggered.

AU Health System Inc., AU Medical Associates Inc., and AU …