Carilion Clinic says it has lost more than $150 million because of the pandemic. American Guarantee allegedly refused to provide coverage or properly investigate Carilion Clinic’s losses, according to the complaint filed March 18.
“To cushion the impact of the coronavirus and COVID-19, Carilion Clinic turned to its property insurer, AGLIC, to whom Carilion Clinic had paid nearly $1 million in premiums in exchange for $1.3 billion in property damage and time element (also known as business interruption) coverage effective June 1, 2019 to June 1, 2020,” the lawsuit states. “AGLIC, however, declined to fulfill its obligations to Carilion Clinic under the policy.”
Carilion is seeking damages for breach of contract and a judgement declaring the scope of American Guarantee’s obligation to cover the losses under the policy.
As of March 24, American Guarantee had not filed a response to the complaint.
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