Arizona Hospital Loses COVID-19 Coverage Battle Against Continental Casualty

PHOENIX — An Arizona federal judge has dismissed a hospital’s COVID-19 coverage action against Continental Casualty Co., adopting a magistrate judge’s finding that the virus does not cause “direct physical loss of or damage to property,” as required by the policy.

In a May 6 order, Judge David C. Bury of the U.S. District Court for the District of Arizona agreed with the magistrate judge that because COVID-19 “can be easily cleaned, dissipates quickly, and does not damage property or the air within,” it does not cause “actual, tangible, physical damage or alteration to property.”

TMC Healthcare allegedly sustained more …