Alliance Radiology sues insurer for COVID-19-related damages

Over 400 Total Lots Up For Auction at One Location - OK 04/14

Alliance Radiology sues insurer for COVID-19-related damages

by John R. Fischer, Senior Reporter | May 04, 2020
Alliance Radiology is suing its insurer to cover damages stemming from business lost due to the COVID-19 pandemic.
A Missouri-based radiology group is taking its insurer, CNA Financial, to court for coverage it claims it is owed from losses caused by the coronavirus.

Alliance Radiology PA, a 28-physician practice in Kansas City, says it filed the suit in accordance with the “sue and labor” clause in its policy to obtain compensation for business it lost from halting emergency procedures in compliance with government-ordered shutdowns. It asserts that because a virus exclusion is not in its policy, COVID-19 constitutes physical damage that should be covered. The suit is titled, Alliance Radiology PA v. CNA Financial Corp., according to Business Insurance.

“The plaintiff has taken such steps by, for example, complying with stay-at-home orders,” said the suit.

Servicing GE/Siemens Nuclear Medicine equipment with OEM trained engineers

Numed, a well established company in business since 1975 provides a wide range of service options including time & material service, PM only contracts, full service contracts, labor only contracts & system relocation. Call 800 96 Numed for more info.

Alliance Radiology says it is obligated by the sue and labor clause of its policy to take steps to protect its property.

It is one of several policyholders to seek coverage from its insurers for enforced business closures during the pandemic, ranging from medical practices to restaurants and auto dealers. Chan Soon-Shiong Medical Center at Windber, for instance, sued its insurer, Travelers Property Casualty Co. of America last month for failing to cover COVID-19-related losses, saying it denied recently filed claims it is required to cover, reported Law360.

"Defendant, Travelers, has wrongfully denied and/or failed to acknowledge the coverage to persons or organizations who have sustained covered losses caused by the COVID-19 virus and the referenced orders," the medical center said in a statement.

Designed as a marine policy, the sue and labor clause requires property to be protected from further losses once a loss has occurred, and for the insurer to reimburse the insured for expenses incurred.

You Must Be Logged In To Post A Comment