Calif. Healthcare Giant Loses Bid for COVID-19 Coverage in Federal Court

SAN DIEGO — A California federal judge has granted American Guarantee and Liability Insurance Co.’s motion to dismiss a health care company’s COVID-19 business interruption coverage action, ruling it did not sustain “direct physical loss or damage” to its insured properties.

In a Sept. 3 order, Judge Roger T. Benitez of the U.S. District Court for the Southern District of California also dismissed a claim for negligent misrepresentation against a Texas-based AGLIC employee for lack of personal jurisdiction.

Palomar Health operates Palomar Medical Center in Escondido, Calif., Pomerado Hospital in Poway, Calif., and several other healthcare facilities.

In March …