Midwestern Colleges Sue Insurers for COVID-19 Business Interruption Losses

KANSAS CITY — Three Midwestern colleges have sued their insurers in federal court, demanding more than $300 million in coverage for losses they sustained when COVID-19 and related government orders forced them to close dorms and cancel in-person activities and sporting events.

In two class action complaints filed on July 23, Benedictine College, Maryville University and Rockhurst University contend that their policies, issued by Factory Mutual Insurance Co. and Zurich American Insurance Co., do not exclude losses arising from a virus or pandemic.

The complaints were filed in the U.S. District Court for the District of Kansas and the U.S. …