Midwestern College’s COVID-19 Losses Not Covered, Zurich American Contends

KANSAS CITY — Zurich American Insurance Co. has moved to dismiss a Midwestern college’s lawsuit seeking coverage for COVID-19-related business interruption losses, arguing that it has failed to allege “physical loss or damage to property,” as required by the policy.

In a Sept. 29 motion filed in the U.S. District Court for the District of Kansas, the insurer further argues that coverage under the policy does not extend to Benedictine College’s financial losses caused by the COVID-19 virus, and that the contamination exclusion applies.

In a class action complaint filed July 23, the Atchison, Kan., liberal arts college asserts that …