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N.Y. hospital sues AIG, Alliance for COVID-19 BI protection



Northwell Health Inc., which claims to be New York's largest healthcare provider and private employer, sued American International Group Inc. and Allianz SE units on Monday for their refusal to provide COVID-19-related business interruption coverage.

New Hyde Park, New York-based Northwell, which says it has cared for more than 100,000 COVID-19 diagnosed patients during the pandemic, charges the Lexington Insurance Co. AIG. and the Interstate Fire & Casualty Co. Allianz unit. has refused to provide coverage despite its "hundreds of millions of dollars in covered costs and losses" that have "ruined" its operations, according to the lawsuit filed in the U.S. District Court in New York Northwell Health, Inc. v. Lexington Insurance Co . and Interstate Fire & Casualty Co.

According to the lawsuit, Northwell's three-year policy, which expires March 31

, provides a policy limit of $ 1.25 billion, with Lexington covering 90% and Interstate covering 10% of the quota share, subject to a total deductible of $ 500. 000 per event, with both guidelines following the same common form and approvals.

The lawsuit states that the coverage includes "interruption by transferable special coverage for each event, which is subject to a $ 25 million sublimity and a 30-day time limit, among the policy provisions.

The lawsuit states that insurers, after delaying a in response to its demand for more than six months, denied coverage in October, stating, among other things, that the coverage's "disruption of infectious diseases" and "decontamination costs" coverage "was unilaterally erased by a contaminant exclusion and that no other coverages were available." [19659002] The disputes say the insurers subsequently refused to reconsider their positions and reiterated their denial of coverage on January 6.

The trial accuses the insurers of breach of contract and breach of the implied good faith and fair trade agreement and seeks an explanatory judgment. ] An Allianz spokeswoman said the insurer did not comment ongoing disputes, while AIG did not respond to a request for comment. [19659002] Last month, a Oklahoma state judge refused to dismiss COVID-19 related business interruption coverage that Cherokee Nation filed against Lexington and other insurance companies.

More insurance and risk management news about the coronavirus crisis here .

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