Well being system BI lawsuit towards AIG and Allianz entities dismissed – Enterprise Insurance

A federal district court in New York on Monday dismissed a COVID-19 business interruption lawsuit filed by a New York health system against units of American International Group Inc. and Allianz SE on the grounds that the losses were not due to direct physical loss or damage as caused by. called for the coverage.

AIG unit Lexington Insurance Co. and Allianz unit Interstate Fire & Casualty Co. had provided Northwell Health Inc., based in New Hyde Park, with all-risk coverage with a total insurance limit of $ 1.25 billion, so the Northwell Health, Inc. complaint against Lexington Insurance Co. and Interstate Fire & Casualty Co.

Lexington provided 90% of the coverage and Interstate 10% on a quota basis, subject to a combined deductible of $ 500,000 per event.

Northwell, which had stopped offering outpatient care services and voting procedures at the start of the pandemic, has made business interruption claims from insurers, which they denied.

The healthcare system sued insurers in New York District Court in February for violating the policy and the covenant of good faith and fair trade.

Judge Jed S. Rakoff's ruling said Northwell had “identified a litany of possible provisions authorizing the reimbursement of its COVID-19-related costs and losses. However, Northwell's arguments in favor of coverage under each of these provisions are not convincing. "

The healthcare system has not made a breach of contract claim both because the coverages “require that the claimed costs or losses are caused by direct physical loss or damage and because Northwell does not adequately claim additional, independent requirements for cover under these terms ". in the summary judgment, the verdict said the insurers to dismiss the case.

An Allianz and AIG attorney had no comment, while Northwell attorneys did not respond to requests for comment.

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