Va. Hospital Network Cannot Recoup COVID-19 Losses Under Property Damage, Time Element Provisions, Judge Affirms

ROANOKE, Va. — A federal judge has refused to consider his ruling that a Virginia hospital network cannot recoup COVID-19-related losses from American Guarantee & Liability Insurance Co. under the policy’s Property Damage and Time Element provisions, because it did not sustain “direct physical loss of or damage” to insured property.

In a Nov. 16 order, Chief Judge Michael F. Urbanski of the U.S. District Court for the Western District of Virginia explained his earlier ruling follows “the mountain of precedent from around the country denying coverage under similar policies.”

Carilion Clinic and its affiliates operate a network of …