A group of four colleges in Ohio sued 15 primary and exaggerated insurance companies and Lloyd's syndicate on Wednesday for $ 1.2 billion because of insurers' refusal to compensate them for pandemic-related losses.
The four private free arts colleges – Denison University, Kenyon College, Ohio Wesleyan University and College of Wooster – sued the U.S. District Court in Columbus Ohio, accusing them of being entitled to coverage under their all-risk insurance policies, according to the complaint. and Denison University et al. v. Some insurers at Lloyd & # 39; s et al.
The colleges, all of which are members of the Chicago-based Educational & Institutional Insurance Administrators Inc., a consortium of private colleges, universities and seminars, state in their complaint that their policy explicitly covers communicable diseases and "interruptions". of communicable diseases "coverage for business interruptions caused by an authority order. The latter also provides cover for decontamination, removal and disposal of substances that cause the spread of infectious diseases, according to the complaint. Loss is strictly related to property that undergoes a significant, permanent change or transformation due to an external force, which may be the case when a fire burns a piece of wood.
The suit states that the universities have experienced loss or damage to their property through the presence of coronavirus on their property; state orders restricting their use of the property; the need to change physical behavior through social distancing; and the need to mitigate the presence of coronavirus in their heating and air conditioning systems and other locations.
The universities said that while resuming personal lessons in the fall of 2020, the disruption caused by the Ohio governor's suspension order
led the complaint to an explanatory ruling that their losses were covered, damages, interest and attorney fees.
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