New York health system sues insurer to recoup $228M in COVID-19 losses

Buffalo, N.Y.-based Kaleida Health is suing its insurance provider, American Guarantee and Liability Insurance Co., arguing it should cover $228 million in losses tied to the COVID-19 pandemic, the Buffalo News reported March 21. 

In the lawsuit, filed March 15, Kaleida alleges that American Guarantee and Liability should be responsible for COVID-19 losses tied to elective surgery postponement and physical building changes that were made during the pandemic.

Specifically, Kaleida says that COVID-19 made parts of its property unusable, which should trigger coverage under its commercial property insurance policy. Kaleida's commercial property policy includes coverage for losses arising from physical loss of or damage caused by a communicable disease, which is "not found in the lion's share of all-risk policies," the lawsuit states. 

"We filed this case to enforce the terms of an insurance policy that we purchased and that our complaint speaks for itself," Kaleida Chief Administrative Officer Michael Hughes told the Buffalo News. 

Zurich, the parent of American Guarantee and Liability, declined Buffalo News' request for comment on the litigation.

Several other health systems have sued to recoup revenue losses from the COVID-19 pandemic, including Roanoke, Va.-based Carilion Clinic and Winston-Salem, N.C.-based Novant Health

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