Texas Medical Clinic Loses Bid for COVID-19 Business Interruption Coverage
May 14, 2021
DALLAS — A Texas federal judge has dismissed a medical clinic’s COVID-19 coverage action against Cincinnati Insurance Co., ruling that it failed to allege “physical loss of or damage to” its property or surrounding properties, as required by the policy.
In a May 11 order, Judge Ada Brown of the U.S. District Court for the Northern District of Texas ruled that government orders that temporarily prohibit elective procedures do not cause a “distinct, demonstrable, physical alteration” of property.
PSG-Mid Cities Medical Center LLC d/b/a Saint Camillus Medical Center sustained significant economic losses after state and government officials ordered clinics to …