N.C. Healthcare Network’s COVID-19 Coverage Action Survives Dismissal Motion

GREENSBORO, N.C. — A North Carolina federal judge has refused to dismiss a healthcare network’s COVID-19 coverage action against American Guarantee and Liability Insurance Co., ruling there are questions of fact as to whether it sustained “direct physical loss or damage.”

In a Sept. 23 order, Judge Catherine C. Eagles of the U.S. District Court for the Middle District of North Carolina further found it is unclear at this stage whether the policy’s virus exclusion applies to Novant Health Inc.’s losses.

Novant Health is a network of healthcare centers comprising approximately 700 locations, including 15 hospitals and hundreds of outpatient …